The markets are roaring higher today based on two items:
1) Today is a Monday… which trading algorithms have been programmed to expect will be an “up day.”
2) It’s options expiration week.
Regarding #1, there is no real reason for stocks to move higher today. The recent data shows that Bloomberg ECO U.S. Surprise Index is collapsing at a pace not seen since 2009 (when everyone thought the world was ending).
Aside from this, the PPI data showed that profit margins fell in a number of industries. And of course, there’s US retail sales falling in February: the third straight down month.
Negative economic surprises, falling profit margins, and collapsing retail do not point to a strong stock market.
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