Friday’s unemployment figure of 10.2% contributed in a perverse way to yesterday’s rally supporting the view that with such dire news, interest rates will have to stay low for some time to come, which bodes well for stocks.
Additional market support came from the G-20 via an agreement over the past weekend to keep the stimulus programs going. That’s all that was needed, and the major averages never looked back.
I took the opportunity early on yesterday morning to add some new positions, in essence replacing those that we were stopped out of during the last pullback. Of course, all sell stop points have been identified and will be executed when necessary.
While the stamina the market has shown is simply amazing, I have to wonder how long it can last. Since no one has the answer, we will simply follow the trend until the end when it bends.