Quiet Week Ahead...

Welcome back from the weekend! :)

This is going to be a relatively quiet week with no big economic release other than the PPI numbers which is not going to change anything (see economic calendar). The only surprise we might get this week is if Consumer Sentiment continue to move higher than expected with all the sales and discounts going around, we could get still some more bond traders pouring into stocks. Yes, bond yields are so low across the board right now that I have been speculating about an exodus from bonds to stocks that could provide significant support against the bear market. Apparently, that was what happened last Friday which ended a perfectly negative day wildly positive as bond yields rose across the board (at least the Dow did end the week negative as I have expected). If bond traders continue to come back into stocks, we could even see the Dow break its current resistance level and bring the Dow back into an intermediate neutral trend with the short term bear trend already broken. Could last Friday's 6.7% unemployment rate be the peak unemployment rate that will usher in a reversal?