It’s hard to know what’s on Wall Street’s pea-sized brain, but we can safely rule out the CNBC point of view that the Dow Industrials have rallied 1200 points because investors are pleased with Obama’s appointments. It is a short-squeeze, pure and simple. Moreover, and for the record, the rally has yet to surpass even a single prior peak on the daily chart, let alone the two peaks we require before the rally would begin to earn our bemused attention. Here’s a graph the shows why the supposed monster rally amounts to little more than noise so far: How far can it go? We’ll eschew guesswork and say only that it can continue until the last drop of blood has been wrung from the last bear. But with consumer spending in a freefall, business investment dropping and recession tightening its grip on the global economy, we don’t see any urgency about buying stocks at the moment.
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