Quick Note On This Morning’s Action

Stocks are rallying hard this morning, against 3+ million in weekly jobless claims and what will likely turn out to be an underwhelming stimulus package.

While jobless claims exceeded official estimates, supposedly the whisper number was way higher. That’ll come next week…

This morning’s rally appears very technical in nature: Breaking above yesterday’s high, causing panicky short-covering (short interest got exceedingly high) along the way. Quarter-end portfolio rebalancing may be a factor as well.

The fact that gold and bonds are also up nicely, and that utilities are the leading sector, speaks to the non-fundamental nature of this morning’s advance…

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