We've forgotten how powerful it is to have markets fight back from bad openings like we had this morning. When we were in sea-of-red mode, you could see that this market could go down for the count, given that the insane prattle out of Washington is so toxic as to make you feel like an idiot for buying anything.
I find it so disabling. In the old days, the Republican Party was the party of fiscal conservation, but it spends just like the Democrats did under Bush. It was always the party that business could count on. But by simply pushing the notion that the debt ceiling is something that isn't routine, as opposed to offering a real plan that can win over Democrats who know we overspend as a nation, the Republicans can't even work with business.
So it was reasonable to think that this market couldn't come back from that ridiculously harmful rhetoric that the president gave us, even as it is true that a shutdown of the government by Republicans making a stand over a refusal to pay our nation's bills is not what the Constitution intended. How much better would it be for the Republicans if they just immediately agreed to a debt-ceiling deal and at the exact same time showed where $2 trillion could and must be cut? They would be heroes.
Nevertheless, the market shook off the negativity. I think that's because people want in, not out, and they are afraid of missing tomorrow's action.
Very bullish for the longer term.