Market is up today. Early morning data didn’t frighten anyone. Plus, there seems to be good news out of Europe. They are working on the Greek crisis, and one would assume that they are working on the rest of the PIIGS as well. One thing that gives you pause, it’s a low volume rally. Last day of the month, the funds bought the market to paint the tape. They do this every month.
Players got short looking for a quick drop, didn’t get it and covered. That is the rally. I don’t see fresh money coming into the market today. The tell, interest rate futures aren’t off sharply at all. There are buyers in that market.
Gut call is that we rally into the close today, and rally into Thursday.
Unemployment is Friday.
I was on Fox Business this afternoon at 2:15, and the panelist from the NYSE said he kept getting short and covering. Interestingly, that was my midday commentary above! This wasn’t a convincing rally that broke the backs of bears. Market settled up, not appreciably higher. Guess what? Dr. Lawrence Summers has said weather will affect job creation this month. They have seen the numbers, tipped the players, and now are preparing the market for a dismal number. Summers points to construction jobs not materializing because of weather. Certainly, the northeast and the south have been socked by weather. My family in Mississippi thinks it might be the second coming of Noah. Watch the short term interest rates, they will give you a clue.