Markets Rally Because The End of the World Was Already Priced In

Another great day here in Massachusetts. That makes two 70 plus degree days in a row. Spring has sprung indeed! Garden prep tomorrow. Glad to see G is still around. While I have no particular knowledge of the railroad company you listed G, my Dad was a railroad trackman, foreman, and supervisor for over 20 years for the old B&M Railroad. I worked weekends with him often. I can lay rail, gauge check it, and properly install switches. I miss the heavy tools and the heat of the gravel in summer time.

Markets Rally Because The End of the World Was Already Priced In
Another ripper to the upside today. In Wednesdays post I noted "..the DOW is range bound from 11,700 to 12,700. Tightly bound. Almost supernatural! Until the DOW breaks either number in the range, the daily move makes no difference to me at all." Well that took two days! The DOW closed today at about 12,850 which is a breakout from the range I had set. I capitulate, and the bulls have win this round. I expect a rally going forward, maybe 2-3 months until next earnings season.

The accumulation of horrible news is astounding. The levity of markets and market players is equally astounding. it is like a drunken frat party where any idea is celebrated as great because everyone is so wasted. "No surprises", "Could have been worse", and "They didn't close the doors" are not exactly bullish sentiments. As for it all being "priced in", I would ask:

• With the indices only about 10% off the highs, is total failure and collapse only worth 10-20% less than the 3 year highs? Good question!

Oil raging, groceries raging. The dollar, gold, and the ten year bond all over the place. TED spreads up. LIBOR maybe fake. So much gyration!

I will try to make sense of it all this weekend. Now it is time for chilling.

Friday Night Entertainment

No suggestions for music/movies/pictures so I will just go for it.

Great Picture

This picture shows us that even a cat knows the economy is in the dumper!

see more crazy cat pics

Musical Interlude

With the general mood out there one of fun and euphoria, I will try to play some fun songs.

Lita Ford and "Kiss Me Deadly":

Totally rocking tune from Cinderella "Somebody Save Me":

A little softer tune, Cheap Trick with "The Flame". Great Vocals!:

The Bangles were a better band than they got credit for, and their version of "A Hazy Shade of Winter" is top notch:

Have a good night.