The previous bullish trends stormed back in play yesterday: higher stocks, emerging markets, lower bond prices and a gold and commodity price rebound.
These are the kind of days where a lot of money is lost and then made. Options and futures expiration coupled with oversold conditions and Fed open market operations are a lethal brew. Yesterday's rally was abetted by confusing economic news that showed the economy still growing which caused bonds to sell-off and stocks to rally. Bernanke’s comments were inconsequential generally.
Investors, it would seem, prefer growth and inflation. Perhaps the Fed does too given political realities. No matter how you view the fundamentals, there can be no argument that markets are currently dominated by professional casino-like activity.