Markets stocks

Rally Mode.

"At the moment nothing seems to tire this equity market".

The global euphoria gripping equities accelerated on Wednesday, as benchmarks around the world extended gains amid economic green shoots and further dollar weakness. The euro rose for a seventh day ahead of the ECB, which is widely expected to top up its pandemic purchase program by at least €500 billion this week. "At the moment nothing seems to tire this equity market rally as just as the winners of the last two months were running out of steam, along come the laggards to the party", Deutsche Bank wrote Wednesday. Final readings on European services and composite PMIs for May showed improvement from the flash prints, adding to the good vibes across the bloc. "The planned lifting of lockdowns will inevitably help boost business activity and sentiment further in coming months", IHS Markit's Chris Williamson said. Again, this comes as Europe takes its first major strides down the road to fiscal unity via a planned €750 billion joint recovery fund, while the ECB mashes the gas on bond buying. Germany is also pushing for more domestic stimulus. Italy saw record demand for a 10-year issue on Wednesday. Of course, the usual caveats apply. A final deal on the recovery vehi
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4 comments on “Rally Mode.

  1. We have literally gone from markets and investors climbing the wall of worry to just jumping over the wall in stride, no effort. I’m afraid to even think about it but may be, just may be, Tom Lee was right all along, modern markets always go up in perpetuity, even if a meteor is heading our way the correct move is to buy the QQQ.

  2. derek says:

    Most commentators and analysts feel compelled to spin a narrative which purports to “explain” price action. Readers here should realize that if the flow data we are seeing is right, real investment managers are not weighing signs of recovery and “green shoots”. They are simply getting forced to buy as the momentum and return to the mean trading systems drive prices up.

    Those systems do not “look ahead” and weigh risk/reward and and, ohmygod, cash flows. They simply react to price action. Buying begets buying, selling brings in more selling. Nothing inherently evil or stupid going on, outside of calling people who put money into the funds “investors”.

    • George says:

      There is a feel to this phenomenon that whispers ” live for today ,for tomorrow we may die…” So many aspects and layers of uncertainty have numbed our senses….

  3. Red says:

    Just a race to compete the second leg of the W formation this market will likely exhibit. We overshot to the downside and are overshooting to the upside. As with anything, the answer is somewhere in the middle.

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