We have three Yorkshire terriers at home each has its own distinct personality.
Milo is the oldest; he is a pure breed, and his personality is brave, alert, and serious. Sonny is the oddest, and he is a little nuts (has most bites under his collar) and a lone wolf. Fat Joe needs attention, lots of attention, and while he's athletic he is also very lazy.
On any given session, the stock market reminds me of one of the "yorkies," and yesterday it was a combination of both. Like Milo, the market takes suspect pledges and false promises out of Europe seriously. Like Sonny, we saw another rally fizzle and bite investors in the process. But, yesterday was most like Fat Joe who walks around the house, but when he gets tired, he simply drops.
He doesn't stretch or slow down. When the message hits Fat Joe's brain that he's tired, immediately his body plops to the floor... just like that. Yesterday, when trading began, the market came out the gate and plopped! It didn't move much after that, outside of some late session nibbling. This market is so focused on having its feelings assuaged minute to minute rather than focusing on the future.
At some point the market has to shift into a more pragmatic role where it can be part of the solution rather than a daily barometer of angst. Until that happens, each day can display any of my three dogs' characteristics. We need Milo, as we should be paying attention to the surge in commercial and industrial loans being made after years of decline.
This dovetails with trends in mortgages, and some housing data which underscore the resolve of the economy and reiterate the potential of the economy. There was a time when the stock market took on that role. There was a time when the market was brave, but that was lost once the tech bubble popped. Now the market mostly barks at nothing and bites itself at the first hint of trouble - real or imagined.