The biggest cheerleaders for the stock market is Bernank. That guy is so afraid of causing the S&P to drop a few handles that he denies that there is inflation, says the slowdown in Q1 was transitory, the current food and energy inflation is transitory, but the productivity growth in the US is permanent! Oh and that strong dollar policy has put $/euro at 1.48. I haven't looked at the commodity currencies in a while and it shocked me. AUD/USD is 1.08. I thought I had the data in inverse but nope, the AUD is stronger than the USD. USD/CAD is 0.95, so the Canadians are the ones laughing about the USD, not the other way around.
Of course the speculators will flock to stocks and commodities, especially the PMs. I am hoping to hear the paper napkin chartists get loud about a inverse head and shoulders pattern and the break above 1350. That could seal the deal for the final run up to the peak.
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There has already been a ton of chattering about that inverse head and shoulders, and one near-permabear has switched to long, apparently because of it:
http://slopeofhope.com/2011/04/and-theyre-off.html
I'm not a believer; IHS is supposed to be a reversal formation, i.e. at a bottom.
I don't believe in the IHS either. But we need a bit more time to suck in more bulls. Remember, a lot of bulls were shaken out 2 weeks ago.
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