Whipsaw action continues, Dow Jones rises 3.2% for the week.

Once again a market not for the faint of heart. Just when it looked like we were heading below 10,000 the Dow raced back up over 10,400 on Friday. You can thank earnings, you can thank the European banks for the most part passing their stress tests, you can thank the market technicals or you can simply thank the fact that we still remain in an interest rate environment that is simply bullish for the markets. I continue to believe that the latter is the main culprit for the recent market floor. We have pulled back below 10,000 multiple times over the past few months only to be met with tremendous support and subsequently race back above 10,000. When treasuries, money markets and C.D.’s continue to yield next to nothing, where else can the $trillions of global dollars that are sitting on the sidelines go? With all of the uncertainty that still exists in the global economies and with continuing high unemployment,  you ask how can the stock markets continue to be so resilient?

Well there are companies that are knocking it out of the park, so yes certain earnings are contributing to the market behavior and yes technically speaking it looks like the 200 day moving averages are being threatened to the upside, however as long as yields remain at historic lows I believe we will continue to see impressive support on pullbacks in this very volatile market.

Have a great week.