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Despite a sluggish economy and uncertainty in Europe, the Dow is flirting with a 4 ½ year high.And that Fast Money pros think stocks go even higher.“Absolutely, I expect the rally to last a while longer,” says trader Guy Adami, managing director of stockMONSTER.com. How can that be?
The number of Americans filing new claims for jobless benefits is rising and manufacturers suffered an unexpected drop in orders in June . The US economy is woeful. Even Ben Bernanke has said “many individuals and households continue to struggle with difficult economic and financial conditions.”
Adami, as well as the other pros remind us that the Street is hyper-focussed on Europe and a quiet development bodes extremely well for the bulls. German Chancellor Angela Merkel’s government backed the European Central Bank’s bond-buying plan .Although Merkel didn't make a big announcement with fanfare, a spokesperson did say Germany was "not worried" by ECB president Mario Draghi's comments last week about buying bonds.
Markets are taking the commentary as a sign that Germany is, in fact, prepared to support intervention by the ECB in the bond markets, explain the pros. "Now we need to see them do it, but they're certainly a big step closer."
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