While it is debatable if this is the “most hated bull market in history” (which as Jesse Felder explained quite well recently it isn’t, and even if it is, it is simply because every uptick is on the back of more artificial stimulus and no reflection of actual organic growth and fundamentals), it certainly is the most entertaining one, thanks to headlines such as this one from Yahoo Finance.
More from the author, who may or may not have mastered sarcasm to an art form:
The ability of stocks to move up on good news and easily discount bad news are the hallmarks of a sustainable bull market.
U.S. stocks had been in a holding pattern for three weeks due to an early Spring Break and the recently commenced earnings season. Monday, equities rallied—lead by energies, of all sectors—despite the failed Doha oil summit. After the bell, the smallest quadrant of the so-called FANG stocks, Netlfix (NFLX), got hammered because its growth projections didn’t meet expectations. Tuesday was no better, with Intel announcing massive layoffs and lowering guidance
Yet, here we are, with the S&P 500 pushing up against all-time highs. It’s do or die time for the bulls, but they retain the edge. If they can push through overhead supply that extends to 2135, it’s clear sailing to the promised land of hallucinated multiples.
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The shorts are not putting up enough of a fight. If they can’t get traction in the wake of the current rout in tech earnings, it’s margin call time. Breadth and volume are not great, but they’ve both reversed their downtrends from 2015. The bottom line is this seven year bull might be creaky, but it still has a bit of steam in it.
Yes, fundamentals are terrible. But if you want to be rational, someone with a lot more money is going to take the other side of your trade until you’re insolvent.
To be sure, one could just call “someone” by their real name: central banks, but what difference does it make.
via http://ift.tt/1StqbtT Tyler Durden