The president couldn't kill this market! He came on television, told us there are more taxes coming, didn't give us any real hope, beyond very short-term, that we could get beyond partisanship and beat the sequester.
And nobody cared. In fact, there was a brief moment when we went higher! I thought the market was jesting. I could have argued that the tax talk should have been able to at least bring out some sellers. Nope, just all net.
Usually the banks specifically and the financials in general act extremely poorly when the president talks, but as my friend and co-writer Matt Horween has pointed out, JPMorgan (JPM) is breaking out, and that's as good a bellwether as it gets.
Days like today, when we almost erase the decline of yesterday, are frightening to many who had decided that this move had run its course when we hit Dow 14,000.
That kind of thinking is so silly. The program selling we hit at these levels is legion.
We hit. We retreat. We come back. Especially when you have the extraordinary earnings we seem to see every day. And perhaps more important, my two "stocks to watch," Banco Santander (SAN) and Yum! Brands (YUM), are telling you that things are just fine. Santander has come right back. Stephanie and I have been telling Action Alerts PLUS readers that you have to be patient with Yum! Brands, and I know the numbers still have to come down across the Street.
But the action is telling. When things are as horrible as they really are right now at Yum! and this is all you get hit, meaning you can get out here, not meaning it won't get hit tomorrow, that's a sign of a much more benign market that we thought we had on our hands yesterday.