The market was running up on hopes for a rate cut in the first quarter of 2007, fed said ain't gonna happen. Yet the market keeps setting record highs every other week. Oh I see, dont try and figure out the market just trade what you see, got it! Right now I see a market that can do know wrong, it rallys on any news good bad, who cares up up up. Vix under 10 not a problem we always get a 5% gap up on monday. The new Fed Chairman has big lips and can blow good bubbles.
It's called LIQUIDITY. And it's also called ( what people perceive to be a "soft-landing"). Some Economists had us in a recession by Q1 of 2007 because of the high oil prices and weakening housing market. Economic strength is bullish. The "double-three" corrective phase in the market since late November is over ( A-B-C-X-A-B-C ) Elliott Wave 5 began yesterday. Enjoy the Ride!