Sure there were the obligatory headlines yesterday . . .
Dow passes intraday trading record
Dow Jones industrial average surges to an all-time high, beating 2007 peak
Dow surges to record on optimism about economy
Dow average blows past its 2007 record high
Dow Jones industrial average surges to record
Dow sails past all-time high
How to Celebrate the Dow Jones Record
Dow Jones industrial average trades at a new high
Dow Climbs to Highest Level on Central Bank Optimism
Dow Reaches Record High, Spurred by Fed and Profits
"An historic day" (Fast Money comment)
New Dow Highs Usually Spur More Buying
Dow Theorists Licking Their Chops
Dow Jones Holds Record High
Dow Index Spikes to All-Time Record
Stock Traders Celebrate
. . . but the sentiment wasn't as unanimous as I would have liked.
Dow Hits Record High: Here's Why It Doesn't Matter
The Dow Isn't Really At A Record High (And It Wouldn't Matter If It Were)
Dow Jones high should not be mistaken for growth in the US economy
Dow hits record high but may be facing new ceiling
Even Jim Cramer was somewhat balanced.
I truly feel that sentiment is muted because collectively we have felt our purchasing power slide since 2000, and that it is quite possible that the market has been in a topping pattern ever since. That might explain the low volume, the weak internals, the sloppy patterns, and the host of other negatives that the markets have shrugged off.
Perhaps better said was this quote:
"Plenty of risks remain, but they are smaller - and they feel smaller to investors," said David Kelly, Managing Director and Chief Market Strategist at JP Morgan Asset Management in New York.
Until there is the feeling of No Risk Whatsoever, investors may remain on the sidelines and the markets may continue their patterns, whatever they may be.
Here's how one of the best investors ever, Stanley Druckenmiller, sums it up:
"The Fed is printing a lot of money. They are forcing people into markets. You shouldn't be buying securities because you're forced to buy them by zero rates. you should buy them because you think they're great value. They're great value only relative to zero interest rates. They're not great value on an absolute basis."
Futures are up today as Asia followed through and Europe has too, only less enthusiastically. At best, the Fibonacci cluster at 1542 slowed the rally, but 1550 remains a key target, and 1600 looms higher as a 13-year trend line target.
Cracks remain in the foundation, though, and I will still act on them. The VIX did not plunge to a new low yesterday as the markets were surging. I was a buyer of VIX April 18 calls. Or maybe it was this little guy.
I also heard a cool reggae mash up by Bob Marley's youngest son Damian Marley featuring his brother Stephen. What a great, hip sound. With the markets this high, everyone needs a little reggae.