Today's action is not about any news or fundamentals. Retail sales ex autos came in less than expected, and total retail sales beat expectations. Empire Manufacturing Index came in below expecations of 30.00, coming in at 23.51. The way the market reacted to Bernanke's talks about the dollar shows the strength for today. The market initially sold off on a rally in the dollar and then bounced back strongly. Traders have seen through any tough talk about dollar concerns. They know the Fed will do nothing about the weak dollar for a very long time.
Monday is basically a chase for performance. Fund managers coming and deciding that they need to keep up with the averages and they are buying aggressively. This could even continue on for the first part of tomorrow, but the buying would be exhaustive, as we are overbought and have gone up 80 points in 2 weeks. I will stand aside today, and then look for a spot to sell on Tuesday.
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