NASDAQ: highest since Oct.
S&P: highest since Nov.
Russell 2000: highest since Nov.
The on renewed appetite for risk based on the green shoots theory. Two factors are pushing "green shoots" today:
1) The Chinese manufacturing numbers, which continue to show expansion, and which is powering breakouts in commodity names like Massey, US Steel, and Baker Hughes.
2) Improved personal income figuresin May, which is causing double digit gains in some big retailers like JC Penney, Nordstrom, and Macy's, which all showed significant increases in volume.
Double digit gains in retailers? Sounds like a stretch based on a single data point, doesn't it? Yes, but no matter.
One hedge fund trader noted: "the vanillas are buying...shorts are throwing in the towel." "Vanillas" are plain mutual funds, which are being sucked in as key sectors continue to rise.
One warning sign: the continuing selloff in long-dated bonds is generating considerable jitters...look at the midday selloff in banks--which never really participated in today's rally.
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