Remember when the S&P was at 1183 yesterday (2% away) 27 hours ago? Those were the days....
Obviously my headline is rhetorical because any question that asks if we should buy stocks can only be answered in the affirmative. We have replaced buy the rumor, sell the news with buy the rumor, and also buy the news. So when Apple (AAPL) crushes their number we will be surprised and rush in as good lemmings. (programming note - CNBC will now commence 24/7 coverage of Apple) The set up is quite particular actually... at S&P 1207, a nice tidy 0.4% markup in premarket tomorrow will take us to last Thursday's highs.
In the old market it would be a perfect place for a blowoff top, and potential level of exhaustion. In this market, the only fatigue is anyone who even dares to think about shorting.
Remember, any bad economic news this week we blame on European volcanic ash.
Kool Aid man says buy the gap up tomorrow... Kool Aid man never wrong.
(today is the 8th up day in the past 9, the only down day being when the most powerful firm in the world is accused of fraud....11th up day of the past 13, and 14th up day of the past 17)