Bullish traders are urging the bears to "Wake Up" today, they say to notice that:
1) Stock pullback this week has been modest, techs have been leaders
2) Bonds keep rallying
3) Oil does not rise, despite Georgian conflict
The story from the bulls:
--inflation is peaking, and that will ease P/E pressure on stocks;
--the U.S. economy is weak, but Europe is weaker;
--the U.S. is further along the economic cycle than anyone else in the world; the U.S. lowered rates before everyone, and the U.S. will eventually raise them before everyone else
--the dollar rally continues; traders are buzzing that longtime dollar bear Goldman Sachs put out a note this morning titled, "Calling a bottom in the dollar."
As a result, consumer discretionary stocks are up today, so autos, home builders and retailers are up, as are financials.
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