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Stocks Hit Another New High, But Contradictions Everywhere

NYSE traders
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Another close, another new high for stocks.

Some observations:

  1. Bonds getting hurt, with iShares 20 Year Treasury Fund (TLT) down 4.7 percent this month...but surely speculation the Fed will be lightening up its bond purchasing program...perhaps as early as September...is a negative for stocks?
  2. The U.S. Dollar Index is rallying, up 2.6 percent this month, but instead of being viewed as a sign that the U.S. economy is improving, most traders are viewing this as an indication of an intensifying global currency war.
  3. Commodities, particularly base metals are having a terrible year, with copper down 11 percent, aluminum down 10.8 percent, zinc down 12.3 percent. Hardly a vote of confidence in the strength of the global economy.

What do these contradictory cross-currents mean? This is what happens when you get global zero-interest-rate policies and QE3. You get strange distortions.

And stocks at new highs? The favorite phrase on the floor is TINA: There Is No Alternative.

By CNBC's Bob Pisani

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    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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