The market keeps teaching a lesson that many market participants don't want to learn. That lesson is that it is not going to go down until it is good and ready to.

It obviously doesn't care too much about the fuss over housing, slowing retail sales, persistent inflation, a weak dollar and cooling economic growth. The market is focused on generally good earnings reports, and it doesn't much matter if you think that is reasonable or not.

The market is so frustrating and so potentially lucrative mainly because it is not easy to understand. I can seldom remember a time when there have been more bears scratching their heads over the persistent strength than we have now. Despite downright compelling logic, we just keep on working higher.

Of course, in the perverse manner that the market works, the fact that so many doubt that we can keep going is probably keeping things going as it ensures a healthy supply of cash on the sidelines to serve as support.

Reverend Shark from Real Money