Friday, June 08, 2007
Freak Fest Friday
Well, we were off to a seemingly rational start to the markets today after the past three day correction. And then, all of a sudden, it's irrational exuberance, and we're off to the races with solid gains across the indices. So, WTF?!? Here's a string of "reasons" why the markets are so optimistic: Trade Gap has narrowed. Even though "The overall deficit remains an unhealthy 5.1 percent of GDP and will likely rise in May as petroleum imports rebound and imports from China continue to surge." Bond yields retreated a correction that seemed expected to occur after yesterday's run up to 5.25%. Oil dropped more than $2 on "demand concerns," "due to higher interest rates." (gimme a break). Should make for an interesting week come Monday.