In today's Barron's Online column I talk about the market latching on to good news and shrugging off bad news. That is typically what happens when the market is in bull mode and several colleagues have pointed this out in various IMs and emails.
But is it true? The market rallied Tuesday not when record housing foreclosures were announced or when Google cratered but when IBM announced a ginormous share buyback plan. It did not rally on lousy retail earnings outlooks but on the idea that the Fed is going to chop rates by another 50 basis points.
So, I don't think it was shrugging anything off and indeed was in a relief rally, thanking the stars that it had not broken down already.
Stranger things have happened.