From The Reformed Broker:
By which I mean that it is no longer necessary to be elated by European bailouts and despondent about European credit downgrades - because the market is now reacting to news and action out of China more than anything else. Europe is so 2011, the VIX barely registers so much as a grunt on headlines that used to turn the NYSE into a shooting gallery (witness Friday's action).
On the other hand, China printed an 8.9% growth number and the futures shot higher here and even in Europe, just 36 hours since S&P cut anything that wasn't nailed down in the EZ. And a scant 12 hours after the bailout facility itself was downgraded, the European stock bourses (yeah, I said Bourses homeboy) are all up (UP!).
Can you imagine a reaction like this just three months ago? When we were fire-drilling out of stocks on just the rumor of a rumor of a downgrade?
Probably not, but that's what is going on. The U.S. stock market can shrug off Europe going forward so long as...
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