A Supreme Melt Up is Underway

This rally has everything to do with a sigh of relief that the economy isn’t falling to pieces. The economic data has been inspiring, which is forcing money back into stocks. Remember, there has been a capital flight out of stocks since the year began. Lots of that money found safe harbor in government bonds, which are being taken to the woodshed today.

The rotation is in effect now, which is supremely bullish for equities.

Also, a vital and key component of the market, autos, demonstrated a strong hand this morning, reporting excellent auto sales for the month.

As such, the price of palladium continues higher.

Some of my favorite ancillary ways to play the autos are HAR and CMI, both strongly higher.

It’s worth mentioning, since we’re on the topic, the transports have been behaving magnanimously.

Most impressive are the gains being enjoyed in the banks, up to the tune of 3.8% in certain regional plays. This is a full blown, cocaine infused, Wall Street shindig. My only reservation is the tepid breadth, standing at just 76%. I’d really like to see it over 85% in order to exact maximum pain amongst the bear population.