The Faded Tuesday Rally

Sure, it was the 20th straight Tuesday in which stocks have advanced, which must be some kind of weird market record, but today's rally really wasn't what one would call robust or sustaining.

First, the volume wasn't there. Second, more than half of the gains made in the first hour of trading were eviscerated by 2:30 pm, with an uninspired late surge getting some of gains back. In the end, it was a nothing move, albeit higher, but with a fairly negative bias as the day progressed. It was almost as if nobody really wanted to be a part of the day's action, even after a three-day holiday.

More and more, people are talking about the great disconnect between main Street - where things aren't going so well - and Wall Street, where it's a party every trading day, and this kind of talk is beginning to make the rounds to trader's desks and onto the trading floors.

While stocks continue to reach new heights, there is scarcely a soul who really believes that stocks can continue to ramp higher. Thus, a top has either been reached or is nearby, simply because of changing, doubting sentiment, which, after all, is the heart and soul and lifeblood of any market.

We all know this cannot continue indefinitely, so the question is whether it all comes apart at once or slowly grinds lower in spurts and spasms over a longer period of time, possibly years, possibly many years.

That is what's known as the unknown unknown. As such, we offer no answers, only more questions.

This market is like an old pair of jeans. You know they're tattered and worn out, and need to go, but the memories of good times and the comfortable feel keeps you from parting with them.

Dow 15,409.39, +106.29 (0.69%)
NASDAQ 3,488.89, +29.74 (0.86%)
S&P 500 1,660.06, +10.46 (0.63%)
NYSE Composite 9,494.16, +51.93 (0.55%)
NASDAQ Volume 1,708,082,250
NYSE Volume 3,719,940,250
Combined NYSE & NASDAQ Advance - Decline: 4139-2471
Combined NYSE & NASDAQ New highs - New lows: 514-63
WTI crude oil: 93.53, -0.62
Gold: 1,378.90, -7.70
Silver: 22.19, -0.303