The stock market has closed up for four straight days and six out of the last seven days. It is trying hard to rally, which does reflect strong underlying strength. But, the little engine, that the stock market has found, will not be enough to overcome the proverbial "wall of uncertainty" . . . that is just so high right now.
A normal wall of uncertainty might sound like (1) what will quarterly earnings be next quarter or (2) will the Fed raise interest rates at the next meeting or (3) will Congress pass some relatively insignificant legislation?
Today, the wall of uncertainty includes (1) will the U.S. default on its debt for the first time or (2) will the Fed stop supporting the economy next month or (3) will the Euro-zone even survive or (4) can Congress do anything useful, anything at all or (5) will derivatives create yet another financial crisis?
I wish the little engine luck but think it needs to lower that wall of uncertainty by reducing the number and gravity of the questions! Eventually, the little engine will prevail . . . but not before the Fall, at the earliest. Be patient! Good days are coming, but not yet.
