While some argue this is a Band-Aid on a broken bone, the disaster scenario was perceived to have been avoided. As that was priced into the market, stocks had one of their best days of the year. Take that, Karl Marx.
The action in the credit markets supported -- and some would say, drove -- the equity move. November and December T-Bill rates ratcheted higher on Friday, however, suggesting that significant concerns remain into year-end.
Thus far in 2013, market corrections have been extremely tame, with a 7.5%, 4.8%, and the latest 4.8% pullback littering an otherwise stellar uptrend. The question is whether we've seen the last spate of fear before performance anxiety kicks in—or if that's just what they want us to think.
The bulls will argue that the big money, many of whom are up 20% or more, won't let their gains slip away as they want to get paid. The bears view the conditioned complacency of dip buyers as a recipe for disappointment, if not disaster, as we edge into the meat of the quarterly reports.
Gold continued to lose luster and Friday's decline triggered a head-and-shoulders pattern that "works" to $1,180 through a pure technical lens. Mr. T can't be happy.
The earnings avalanche will continue this week with Citigroup, Intel, Yahoo, Coca-Cola, Blackrock, Bank of America, Pepsi, American Express, IBM, Goldman Sachs, Google, and Morgan Stanley. Thursday will bring the October 17 debt deadline, which is widely expected to be pushed out, and China's third-quarter GDP will be released on Friday.
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This story was originally published on Minyanville. Its content is produced independently of USA TODAY.
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