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.