Coming Week Market Movers: Bullish Momentum Vs. Bearish Fundamentals

by Cliff Wachtel, Global Markets and The Sensible Guide to Forex Once again we’ve got toppy markets that are not supported by fundamentals other than large scale central bank stimulus. Of course, that very large scale stimulus has been all that’s needed to keep most global indexes and other risk asset barometers rising in 2012 despite the persistent dour fundamentals of recession, EU solvency threats, etc, but how long can that be enough? On the one hand, the Fed’s QE 3 hasn’t yet shown much benefit for either asset prices or employment. On the other hand, the ECB’s OMT, as yet unused, continues to get the credit for falling GIIPS bond yields and thus a welcome respite from bearish EU crisis anxiety. However, it could well be different this time. Unlike in 2012, stimulus alone may not be enough. The S&P 500 and other global risk asset baromete...