There Goes Another Record

U.S. stocks rallied on today, lifting the S&P 500 to an intraday record and briefly clearing its 2014 loss, as investors embraced activity on the M&A front and continued to disregard lackluster economic data as largely due to winter weather.

Mergers and acquisitions came into play, with RF Micro Devices agreeing to acquire TriQuint Semiconductor for about $1.6 billion, while Men’s Wearhouse hiked its cash tender offer for Jos. A. Bank Clothiers.

In testimony this month, Fed Chair Janet Yellen said the U.S. economy had picked up enough traction to handle reduced monetary stimulus, three rounds of which are viewed as helping propel equities higher. Yellen on Thursday delivers her weather-delayed testimony before the Senate.

No economic data was released today.

Tuesday

9:00 a.m.: S&P/Case-Shiller home prices

9:00 a.m.: FHFA home prices

10:00 a.m.: Consumer confidence

10:00 a.m.: Richmond Fed survey

1:00 p.m.: $32 billion 2-year note auction

New Sources: CNN Money and CNBC

Market Update:

Upwards and onwards.  I think the all-time previous high will soon be in the rear view mirror.  Not that there will not be volatility to come, but even with weak supposedly weather related data, the market is still telling us it wants to go higher.

I think we started to see some short covering today as traders realized that they were on the wrong side of history.  But it will become a stronger higher high should some further good news come from Yellen testimony on Thursday.  If not, a double top is a possibility.