This is the week the markets (the “risk on” markets) got everything they could possibly dream of – unanimous support from central banks around the world that whatever it takes is what will be done to continue to levitate asset prices, in particular stock and debt markets. The market response that began September 6 has been ebullient and has a chance to morph into unadulterated euphoria before it ends.
The Zeitgeist of the bull run in progress that began at the March 2009 lows is Apple. It continues an extraordinary run making new highs with hardly a bump of a retracement. It announces new product after new product that is immediately fawned over by professional reviewers and “oversubscribed” in demand by the public. Its stock is owned by every institution and hedge fund. It is even owned by bond fund managers. It has to be owned.
At some point it will provide the signal the bull market is over. Right now that signal would be a close below 647. In the meantime, party on. Oh, the Fed would much appreciate it if you would by a house and an iPhone – they are banking on it.