With no apologies to the Bangles (since Prince penned that tune), it is indeed just another melt-up Monday (Manic Monday Lyrics). The market is still kissing Valentino on this one as the reasons cited for the lastest Monday rally are mergers and data.
Mergers? Airlines are merging not because they see hot business prospects but becasue they cannot survive otherwise. And don't get me started on Palm, which was plucked from the refuse heap for a song by Hewlett Packard last week.
The problem with all of this market joy now - not during March and early April but now - is that we already know the economy is recovering. Each bit of news we get does not really add to the body of knowledge. (I am tired today so insert your own rant here.)
Perceptions are so wildly wonderful now (what sentiment related indicator was it that is above its 2007 peak?) that we seem to be overlooking our brand new energy tax (not to mention an attempt to blow up a car in Times Square).
Tax? Well, sort of. What will happen when all sorts of Gulf restrictions filter through the system? And don't look know but we've already started to breach the $3 level at the pump. Yes, the national average is still $2.895 but the trend is frighteningly to the upside. And has been since before the oil rig blew up.