The Dow has hit 10,000 and Goldmans and JP Morgan in the US have beaten their Q3 estimates. All is good in the world and so the rally continues. This week and next are key weeks for the stock markets in the US and UK because so many companies are reporting Q3 numbers.
With every company that beats its number, the rally grows a bit stronger. I really did not see this coming (although am long stocks so it is all good). There really should have been a correction by now as markets are very over-bought considering the state of the economy.
There is only one answer as to why the correction has been put off; that QE is such a powerful drug that it has kicked of the mother-of-all-hair-of-the-dog-asset-bubbles. This really gives me the heebie jeebies as it means the Stock markets (and everything like gold, oil etc is correlating at the moment) is going to be on one huge roller coaster for the next few years with massive ups and downs.