We had a lovely rumor-based rally on Friday as anticipation swells ahead of Bernanke's report to Congress this week. Although the Fed Chairman has said no, non, nyet, nein, etc. in every possible language for months now – as David Fry notes, the "Bad News Bulls" continue to interpret each new bit of negative information as another reason to expect MORE FREE MONEY to rain down from the Fed.
Even at PSW, our sole bulish premise of the last few months has been an expectation of additional bailouts but, so far, they haven't come – so we have gone back to being cashy and cautious in our long-term positions while remaining more bullish over the long-run, where the G20 MUST step in and pump up the economy.
IN PROGRESS
