Friday, March 13, 2009

Mr. Market hears no evil, sees no evil......

We're still in a vacuum of real news but the markets are still soaring around the world. This is going to be our third major bear market rally (remember there were some massive upward moves in the market back in the 30's as well) in the past 8 mths.

The markets have now reversed above a number of technical level and most fast money traders will probably try to ride this for another 100 points to the upside (however, there is some risk that many will sell their positions and try to take their profits for the week).

China continues to warn us about our debt levels (which have truly exploded in the past few months) but until they really stop buying our treasuries, I don't see their words having much bite.

"China’s Premier Wen Jiabao said he’s concerned about the safety of U.S. government debt.

Ten-year notes headed for a weekly decline as Japan and China signaled they will take additional measures to boost their economies. China, the U.S. government’s largest creditor, is asking “the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets,” Wen told reporters today in Beijing."

Over the next two weeks we will start hearing from companies that are concerned about their first quarter results. That may take some wind out of the sails of the market.


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