Sell The Rumor, Buy The News: Market Set For A Rally Through Year End

Wall Street strategists publish targets for the markets as a whole from their big picture analysis (i.e top down analysis). Then there are the Wall Street's equity analysts who publish price targets on individual stocks based on their analyses of the companies they cover (i.e. bottom up analysis). Unfortunately, the combination of those stock pickers' targets don't jibe very well with the strategists' targets.

Corporate credit markets are off to a pretty crazy start this year. On January 3, Goldman Sachs was already closing out its number-two trade recommendation for 2013 – a long position in high-yield debt – on account of the astonishing rally that rang in the new year.

By Marc Chandler:The euro extended its rally to a six day high, just shy of $1.32 before the results of the ECB's allotment. The results were at the upper end of expectations and the euro was returned to session lows. A classic buy the rumor of a strong demand and sell the fact. Expectations seemed to have crept higher. The larger short squeeze in the euro may not be over. The key seems to be $1.3050 area. It should now be support for this corrective advance to remain intact.

The Dow hit an all-time high today. First the scoreboard: Dow: 14,254, +125.9 pts, +0.8 percentS&P 500: 1,539, +14.5 pts, +0.9 percentNASDAQ: 3,224, +42.1 pts, +1.3 percent And now the top stories:

Steve Reitmeister submits:After a stellar +26% gain for the S&P 500 in 2009 the market is set to post a solid 12%+ showing in 2010. Even with the strong profits already in hand, most signs point to more upside in 2011. Here are the top fundamental reasons for the rally to continue for a third straight year.