The most important news in Dec will be the Bush tax issue when as Orzag claimed today ( before joining Citibank - guess that does not need any commenting) in a press conference all should be extended for 2 years that could already be the reason for the rally or finally be the reason why they ramp up the market once again to new highs before a big sell off starts.
2. The rally was sparked by speculation the ECB may join the FED in the grand scheme of market manipulation by declaring they will also buy whatever can be bought.
JP Morgan On JC Trichet's Third Attempt At Pulling Off Paulson's Bazooka: Advance Thoughts On More ECB Bond PurchasesSubmitted by Tyler Durden on 12/01/2010 23:47 -0500
Today the market surged after it was announced that JC Trichet has finally thrown in the towel and will launch some version of "buy the everything" program made so popular by his bald transatlantic late-afternoon genocide buddy over the last two years. Subsequently the market surged more on a rumor that America would send a mega dose of viagra to make Trichet's "bazooka" even bigger by boosting America's, er, IMF contributions to what will soon be a multi-trillion bail out. Lastly the market surged some more when that last rumor was proven to be false. Which is why tomorrow at 7:45 am Eastern (with conference to follow 45 minutes later) the hapless Pinata formerly known as Jean-Claude Trichet, whose every action is now predicated by the markets, better have something good to announce or else the market will go up so more... just as it will if there is no news. So for all those who wish to know why buying stocks is a guaranteed way to make money now that nothing at all matters, here are JP Morgan's advance thoughts previewing the ECB action, as well as Greg Fuzesi's observations on additional bond purchases.