Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
This appears to be the “no news” rally. Fitch said it will not downgrade France this year, hence no news = good news. But even better, we’re back in the thought process where bad news = good news, specifically to China. Both imports and exports fell to 2 year lows… showing trade is slowing significantly. Sounds bad on the surface. But in the era of constant intervention it can only mean one thing … more Chinese easing. So bad news = good news. It’s times like these bulls can have their cake and eat it too… when news is good, they cheer, and when news is bad they cheer (sometimes louder) because it means intervention. That is the current situation.
It feels frothy to me at this point…
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