Without a happy bond market a strong stock market can not continue... And all the FED yada yada is going against the bond market now.
Even as M&A activity heats up...with the corporate hyper-liquidity remaining from the Greenspan Daze. Clearly the Bubble Paradigm has left the building...and a 1970's style "nowhere fast" market is in place.
Still it's amazing to see all the happy faces in the Wall Street media...of course they are reflecting the current high liquidity situation...which is changing all around them. The boat may be sinking...but at least the water hasn't reached the "first class" compartments yet!
Down at the bond market level...the gloom is waist deep and people are putting on life jackets and heading for the exits...
And the rush to cash continues...as higher rate hopes boost the dollar...as well as demands to "cash out" of this game...
Big Picture Thinking is almost nowhere to be found now...as each player grabs "their part of the elephant."
And the Band Plays On...at least for a while.
