Borrowing from John Hussman’s weekly update:
The market rebound of recent weeks has essentially been grounded in exuberance that the global economy is deteriorating so quickly that central banks will insist on accelerating their monetary interventions. While both corporate earnings and revenues are now in retreat, we also see enthusiasm about the remaining economic activity being captured by a handful of winner-take-all companies. Those two dynamics largely summarize the tone of the market here.
Fastenal CEO Dan Florness:
The industrial environment is in a recession – I don’t care what anybody says, because nobody knows that market better than we do. You know, we touch 250,000 active customers a month.
Massive divergence between fading market breadth and surging indices, coupled with a massive short squeeze, means it is likely that the market will soon catch down with reality. If the central bankers and their tame HFT boyz let it, of course.