- The S&P 500 did close about 1,200 on the session, which was a fairly significant event given that it lay above the recent trading range. That said, bulls will need to see this move sustained through the end of the week to shore up confidence for the remainder of the year.
- With relatively oversold conditions in place prior to today's positive economic data points, the scale of today's equity move was probably a bit disproportionate to the reported numbers. To be sure, the data was positive so I don't want to understate their significance too much, but a monthly addition of 93,000 jobs is far from what is normally seen in a 'normal' recovery.
- Gold spent the day largely unchanged despite what appears to be a pick up in inflation expectations. As I mentioned this morning, I take this indifference as a sign that gold isn't trading as inflation-hedge security at the present time, which is indicative of a market that is built purely on momentum. This momentum could continue on, but I remain skeptical.
- Putting the Chinese and U.S. economic data aside, the reports of additional bailout funds for the European Union from the U.S. Treasury added a fair bit of fuel to the bullish fire. The perception, of course, was that if the United States decided to pump additional capital into the EU much, if not all, of the liquidity issues that now face the Continent could be corrected in short order, thus lifting one of the primary weights on the market. But as I linked to on the blog earlier today, it appears this optimism may be a bit premature given a closer reading of the actual statements. While I won't republish the FT Alphaville post (since I Tweeted it earlier today), here's a link to the explanation they provide. I think it's pretty good insight and likely the realization market participants will come to sooner or later.
Until tomorrow.....
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