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 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

  • Bob Pisani

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

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