RISK ON!

In the never-ending rec room ping pong match between bearish bank news and bullish recovery data, it just became Advantage Bulls as the Bears shanked a shot off the side of the sofa.

Manufacturing data has been rolling in from around the world over the last 24 hours and the Growth Gang has taken control of the serve.  And let’s not forget the Seasonality – December is about the underinvested playing catch up, chasing the indexes and the hottest stocks.  December’s about the Santa Claus Rally in which the junkiest of the junk stocks take the reins.  December’s about anticipating the January Effect and getting way long in front of it.

My friend The Fly has some choice words for those who would deny said seasonality, posted 5 minutes after midnight:

I will not warn you again. Therefore, let this be your final warning: Santa Claus is coming and his reindeers are going to bite your faces off. You can talk all the sh*t you want about “ominous this” and “scary that.” However, at the end of the day, you’ll be getting punched in the face with Portuguese dinner plates, not me.

How much do you love The Fly?

Elsewhere, Barry sees signs of a year-end meltup while Jim O’Neill (Goldman Sachs), the man who created BRIC, is now talking about the start of a new “global bull market for equities”.  One year ago today, I said O’Neill’s BRIC was the biggest market call of the decade.  His bullishness, while certainly tied to his new role at GS Asset Management (gotta be bullish to raise assets), should not be ignored.

And how about a “blisteringly strong ADP report”?  93,000 jobs, Chulo.

But as befits any ping pong volley, ups and downs will abound and the advantage can switch very quickly.  Tomorrow could bring a fresh set of “Belgian CDS blown out” or “Trichet loses his mind, addresses the EU in complete mime garb including white face and horizonally-striped shirt, feigns being trapped in a box as an economic metaphor”.

The bears are still holding the paddle, but today is looking Risk On.  Enjoy.