You know the pattern by heart now. Oil goes down and rates go lower. The "freak-outs," those who believe that these are both bad signs, come out of the woodwork.
The next day, we would start buying the consumer winners all over again. It's just an Escherian Stairwell, a stairwell that keeps going and never ends.
The next shoe to drop is that we will soon start to buy the bank stocks, simply because their price-to-earnings multiples (even with this rotten yield curve) make them compelling. Also, each day we get closer to a time when banks can operate as businesses, rather than wards of the state. These are going to be fee-based businesses with commercial lending primarily, and we may even see some consolidation again, as the smaller players can't really go it alone.
I am not saying banks are the "places to be." I am saying that any group that has basically outperformed the last 1,000 Dow Jones Industrial Average points of the rally is going to draw interest. Not all the money can go to Visa (V) and Mastercard (MA).
I liked this market's willingness to embrace the "sub rosa" as a positive, hence the gains in United Technologies (UTX). I also thought that the action in Facebook (FB) was constructive, as that stock has become a dog.
The oil stocks? What can I say? It's still too early for the stocks, but if my near-equilibrium story plays out, you may have to go there, too.