Super Market is back in action. Faster than an accellerating debt crisis, more powerful than the Wall Street bears, able to leap rational skepticism in a single bound.
Unfortunately, that S on the maket’s chest stands for the dollar, which is down 1% today in foreign trading as a .25 Fed cut seems to be a sure thing and many bets are being placed on .50 OR MORE as the United States seeks to become this decade’s Brazil, where the market looked like a really great investment too, right up until it collapsed.
But there’s no sense in dwelling on that now or on the $93 oil or the dollar at 76 (all-time low) or the Euro’s all-time high or the possible unwinding of the carry trade or gold punching through $800 or the fact that earnings (with 57% of the S&P reporting) show shocking weakness in the US that is being offset by foreign growth. Nope, we’re not going to talk about any of that as it’s time to party like it’s Jan 13th 2000 (5 days before the collapse). This is kind of like 11:45 on New Year’s eve when we’re all a little tired (those of us who are parents that is) but we pull it together for the big event (in this case the Fed on Wednesday) but, once that ball drops and the band goes home, that party ends really fast!
No, today is a day for investing in YHOO (got ‘em) and seeing what else gets a good run on a day when the markets should gain a full point based solely on the decline of the dollar. Even Warren Buffett left the country last week to spend his money before it became worthless. Buffett also said to CNBC that the chance of us heading into a recession at this point is "fairly significant," something that has been ignored by the MSM so far.
Well what does Buffett know? We’ve got stocks to buy! The Hang Seng flew up almost 4% today (mainly a gap up) led by financials who rejoiced on the good news by CFC that the mortgage crisis is over. Sure it’s BS but. just like any good party, anything is an excuse for another toast! The Hang Seng ended the day at 31,586, up 50% in…