Nothing like taking a week off and then realizing that all that has happened is the stock market went higher in the face of nothing news flow from Europe as well as, in the end, America.
I say "nothing" news flow because our own Doug Kass has pretty much laid out the banking program as a sham in another article, and the plummeting Spanish 10-year plus the collapsing euro pretty much verifies that analysis.
What a downer considering how there was so much hoopla about the European and Chinese rate cuts and the emergency banking measures that were, alas, nothing more than the usual give and take in which the Germans give and then take away. One day the rest of Europe will rise up against Germany with the hope of Britain and the U.S. leading the way.
Whoops, that's 1941 talking. There's no such plans now nor could there be because while we still may be bastions of democracy we are no longer financial arsenals of democracy.
Of course, though, the big change is that stocks went up anyway for most of the week, no doubt because they were supposed to go down -- and when they didn't, the bears covered. That's the standard excuse, but it will have to do because there will be nothing in earnings and there was nothing in the employment number that truly made you want to buy anything. The selloff Friday obviously wasn't strong enough, judging by the looks of this morning's futures, and now we have to pay the price again of European dithering, colored by a prejudgment that Alcoa (AA) will be awful again. Funny, Alcoa wasn't even awful last time but things have gotten worse for aluminum so the compnay would have to had fired everyone and still sold as much aluminum as last quarter to really blow the numbers away. Given the labor intensity of making aluminum, I don't think that's doable.
So now we wait to give up points in the industrials, financials, oils and techs and have them transferred again to the utilities, packaged goods stocks and healthcares for the next round of earnings disappointments.
Wish it weren't so clichéd. But in reality, this market's been clichéd for two years because of Europe. So why should now be any different?