I think I will start with asking a question in Canadian: What a wacky couple days in the market eh?
Whoa! Volatility is back!
None of this helps from a confidence standpoint of course. The dollar trade the past few days was absolutely ridiculous:
Crazy isn't it?
Folks, moves like this on the dollar just are not supposed to happen. Stocks and other commodities caught fire once the dollar started collapsing this morning.
We sold off later in the day to close up around 1%.
What was interesting today was watching the bond market. Take a look at the t10 year:
As you can see, bonds actually moved higher despite the sharp rally in stocks. We should have seen bonds move int he other diection as the market soared higher.
This pretty much tells you that there wasn't much conviction behind the rally. Most investors remain scared and prefer to sit in bonds.
The move higher was all about the falling dollar today.
Why this is a good thing for stocks is beyond me. I also think that all of the money the Fed is creating one of the reasons why we are seeing both stocks and bonds rising at the same time.
We had another POMO from the Fed today like we saw on Monday so today's move makes a little more sense from a "funny money" standpoint.
Fundamentally of course none of this makes any sense, but we all know those have gone out the window for the time being.
Just keep one thing in the back of your mind: The fundamentals always matter. Just ask anyone that leveraged themselves into the tech bubble.
Let me finish up with a great video from Jim Rogers that was done on CNBC Asia last night.
Jim hits the cover off the ball as he slams CNBC, and rips into the artificial book values of the banks that the analysts feed the bulltards on Bubblevision.