Last week a few numbers came in and were quite negative and the market still went ahead. The market seems determined to move up no matter what the news is. How long can they continue to do this? They're not playing the market on it's merits. It's a bit like batsman planning his shot before the ball is bowled...you're bound to either make a great shot or get out. The risk is higher.
There is a 60% chance that we will see an interest rate cut next week, and the bonds are pricing this in. Will the market move positively or negatively on the news. My experience tells me that the market tells Greenspan what they want him to do and when he does it they start selling again.
