Just like my dreams, do equities fade and die?

Dreamer, you're nothing but a dreamer. Well can you put your hands in your head? Oh no.

Apologies to Supertramp but there have been times recently when these markets and the desperation to put on the blinkers and ignore the facts have reached dreamlike—possibly nightmare—proportions.

To pick up another dream reference from my youth, this market is waking up every day having been infused with golden phizzwizards and ignoring the trogglehumpers. (Roald Dahl's "BFG," for those of you who had an inadequate education or no small children of your own).

Wall Street
Jeremy Edwards | Getty Images

Whether it be the roulette wheel of U.S. data-watching or the refusal to admit that Greece is a an economic basket case of epic proportions, the net result is the same. At most, equities have been having a bit of a wobble here and there only to continue the rally to record levels in the case of U.S. markets and not far off in terms of other indices.

One example for me last week was when I was doing a short piece for our U.S. affiliate MSNBC. The anchor Stateside threw to me with the line; "So Steve, markets rallying to records level on the back of the great jobless data".

For a moment I thought about replying; "Are you kidding? The market would have dumped on those numbers had it not been for the atrocious Producer Price Index (PPI) numbers Thursday. Don't you get it? We only rally on rubbish numbers these days." But of course I just said "yeah, great news," and carried on.

Now the MSNBC audience may not be financial news junkies, but at least they live in a world bereft of the same kind of cynicism we exhibit on Wall Street and in the City.

Those PPI data, along with retail sales and gross domestic product (GDP) could have sent a market worried about the underlying economy running for the hills but oh no, who cares about the foundations of the economy when we can get a few extra months with no US rate hike?

Even the bad news from the corporate sector is ignored if there is any excuse at all to pump the market higher. The nearly finished S&P Q1 reporting season has been awful if you look at revenues but no-one is. The predictable and contrived earnings beat is all anyone has been looking at. Same old trick, call it down in the pre-season and magic up a beat. Result—buy, buy, buy.

My favorite dream sequence of Bobby Ewing-like proportions of last week was over the non-bid for Avon. The shares in the under-fire cosmetics group surged 20 percent after the hoax SEC filing from the dubious PTG Capital Partners. So much for the market doing its due diligence before placing the buy orders. Traders wanted it to be true and PTG sounded familiar so up went the stock.

Dreams of course can very quickly turn into trogglehumpers, I mean nightmares, and European bond investors have been finding that out in the past few sessions. So for the equity junkies enjoy it while it lasts because sooner or later we might all wake up in a cold sweat.