The stock market and the economy are two different animals. The stock market is basically a casino with bets being placed by various players, mainly institutions, hedge funds, retail... The chips in play are controlled by a large extent by the Fed. They are putting more chips in play. There is more money in the system to buy stocks. The Fed is artificially propping up the price of mortgage debt which artificially inflates asset values for banks and institutions who are holding MBS. This allows banks/institutions to value their assets artificially high with help from the Fed. This gives them more gun powder to buy risky assets like commodities and stocks. That is what is happening. This is not trickling down to the economy yet. When it does, everyone will get bullish and that's when the chair gets pulled out. The fundamentals of the economy are still impaired, but the stock market is no longer impaired. The stock market will keep climbing this wall of worry until more shoes drop and the trickle down effect fades away. This will take several months. Until then, the shorts will continue to be frustrated with this market.