This market would have sold down at one point and sold down hard on a sequence of events like we had today, a one-two punch of lower interest rates and lower oil -- something that used to signal weak demand -- as well as a Fed that seems bent on tightening at some point before year's end.
That's a combination that would have sent us down a percent or two even a few months ago. Oil itself, down a buck to $41, could have triggered that kind of loss in the market, especially when copper's been down for four straight days.
The combination of lower oil and higher rates had been the kiss of death before this quarter began.
Instead, it's being ignored. Entirely ignored. There was a bid under the market the likes of which I haven't seen in some time on a Fed day. Usually the bears can crack the darned thing. Or at least put up a fight.
But there wasn't even as much as a blink, that's how badly people want into this market, and hedge funds seem to want to cover their shorts.
This week's the toughest gauntlet of the year. When you look at the results though the big-cap companies, the Johnson & Johnsons JNJ and PepsiCos (PEP) , the IBMs (IBM) and the Microsofts (MSFT) , the United Technologies (UTX) and the Apples (AAPL) , and now Facebook (FB) are all reporting excellent earnings. Sure, some people have picked apart GE (GE) and Honeywell (HON) . McDonald's (MCD) was viewed as subpar. Wells Fargo (WFC) , unlike, say, JPMorgan (JPM) , only did in-line numbers. Intel INTC wasn't so hot. Nevertheless, it's still hanging in there. Twitter's (TWTR) , well, Twitter. (PepsiCo, Apple, Facebook, GE, Wells Fargo and Twitter are part of TheStreet's Action Alerts PLUS portfolio.)
Face it, you know the big guns have delivered. Still, that hasn't really mattered. The major hedge funds that are programmed to sell on lower oil seem to have disappeared. The funds that view higher bond prices and lower rates as a red flag just don't seem to be operating anymore.
Could they have taken the money away from these people?
You sure have to wonder. Because it is truly a major shift, one that's not being talked about enough, and one that seems, at least for now, here to stay.