Daily State Of The Markets: Break? We Don't Need No Stinking ...

By David Moenning: Good morning. After it became clear that the Mario Draghi was not going to let the eurozone implode this summer and that the U.S. economy was not going to plunge into recession, investors began to look ahead. And what they saw wasn't half bad. They saw corporate America with a boatload of cash and decent earnings. They saw the housing market starting to show signs of improvement. They saw the consumer starting to regain some confidence.

By David Moenning: Publishing Note: I am traveling on Monday morning and will not publish a report. Daily State of the Markets reports will return on Tuesday.Good morning. About the time the lunch hour rolled around on Thursday, stocks were surging and it looked like the bulls were going to run away with the game. After a shaky start, it appeared that the buyers had returned, the stops were being hunted, and performance anxiety was back in vogue.

By David Moenning: Good morning. After suffering through an extended "sloppy period" (my trusty charts indicate that the DJIA had been down 4 days in a row and it had been nine days since the S&P had enjoyed a good day - and frankly, that day also ended badly) the bulls finally recovered some of their long-lost mojo on Thursday.

By David Moenning: Good morning. Many analysts have opined that last week's three-day joyride to the upside, during which the DJIA spurted more than 450 points higher, was based on (a) the hope that the European Central Bank would quit dinking around and finally do something about the spike in interest rates that is threatening the eurozone and (b) the idea that the Fed would soon drop the flag on another Risk-On trade in stocks, emerging markets, and commodities.

By David Moenning: Good Morning. As I have mentioned on a couple of occasions recently, I believe that we are now in the throes of a new cyclical (or "mini") bull market. As such, we should expect our heroes in horns to keep their opponents at bay for quite some time yet as the median mini bull that occurs within the context of a secular bear (i.e. a move spanning a decade or more), lasts about 500 days while the average lasts about a year.

By David Moenning: Good Morning. You have to give the bears credit for at least being steadfast in their views. After getting their heads handed to them for much of the last twelve weeks, I was told by a card carrying member of the-glass-is-completely-empty club yesterday that stocks were no doubt going to begin a major correction in the next day or two.

By David Moenning: Good Morning. As we look back on the seventh consecutive session of the current sideways-is-the-new-down market, it becomes clear that Greece is still the word. While I was secretly hoping that we could finally be done paying attention to absolutely everything that is uttered by politicians on the other side of the Atlantic, yesterday's session made it clear that this is simply not the case. Yep, Greece still matters whether we like it or not.

David Moenning submits: Good morning. Something happened yesterday afternoon that made me do a complete double-take. Could it be? Did my eyes deceive me? I knew I had been on that conference call for a while, but did the euro and the stock indices actually avoid trading tick-for-tick for a brief period? This, of course, prompted a question or 13 such as: Has the linkage weakened? Is the euro/dollar/stock "trade" over? And can we now get back to the business of investing in stocks again?