The bulls are in a technical heaven right now: S&P 500 up 7 of last 8 days...only 1 percent from a multi-year high...market leader Apple less than 2 percent from an historic high...historic highs in the Dow Transports...if nonfarm payrolls are a significant upside surprise (as the ADP implied) the market will rally again...
What caused all this?
Throw in better news on Greece last week, a rebalancing where traders bought stocks and sold bonds, better economic news...and traders scrambling to cover short positions...and there you have it.
Is it any wonder traders who adopt long-term (6 month) fundamental positions on the economy...bullish or bearish...throw up their hands and become momentum traders when you see this kind of action? The Dowhas moved almost 1,000 points from its April high to its June low, and has now regained almost all of its losses...in 8 days.
. Perennial corporate gadfly Evelyn Davis, as always, provided one of the few moments of levity during an otherwise straightforward vote by NYSE Euronext shareholders to approve their merger with Deutsche Boerse.
Ms. Davis started by announcing that she had not slept well the night before (breaking news!) because she was distraught over the prospects of the Germans taking over. "It's become Deutschland ueber Alles!," Ms. Davis proclaimed, noting that she was a Holocaust survivor.
Gentle reminders that this would be a global company (one-third of the board would be German, one-third American, one-third other nationalities) did not seem to faze her. She went on to predict that in a few years there would only be two financial capitals: Frankfurt and Shanghai.
She urged the assembled shareholders to vote against the proposal.
Ms. Davis then switched gears, expressing concern that CEO Duncan Niederauer might eventually be removed as CEO of the combined company, and asked aloud if he would accept the job as CEO of Goldman Sachs.
Duncan, who sat through the harangue with a good-natured smile on his face, would only say, "Evelyn, that is not in the proposal in front of us."
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