Pisani: Market's Groundhog Day (Again)
Groundhog Day, déjà vu. Stop me if you've heard any of this before: volume light, no real sellers...half-hearted-attempt to push market down at the open has no legs, shorts cover immediately...Trichet says that speculation that Greece will exit from Euro zone was "absurd."
All the above happened today, again.
Many just seemed baffled about why they could not get the market down at the open, but there is no real steam behind any sell move recently. This is exactly what happened in the third quarter of last year, when shorts just gave up.
There is one thing the market does seem afraid of: euro weakness/dollar strength. There are obvious reasons why sustained dollar strength would be a cause for concern: 1) it makes U.S. exports more expensive, and 2) it lowers the value of profits that are repatriated from abroad.
The prior two days, that dollar strength caused stocks to flutter. But the market seems to be saying that it thinks sustained dollar strength is unlikely in the short term.
Dow & Nasdaq close at new highs.
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