The Reason Is Not the Season

Seasonally favorable or not, I do think the setup into year-end continues to favor the bulls. The consumer appears to be strengthening (nobody on the Street expects that), and enterprise as well as carrier spending is steady and strong. The fundies are in good shape, as I have continually outlined . Meanwhile, the action in the stocks speaks for itself, as Applied Materials(AMAT Quote) joins Texas Instruments(TXN Quote), Broadcom(BRCM Quote) and so many others that fell after their earnings report, only to rally back. With so many strong reports and subsequent 52-week highs, it's been a rather remarkable earnings season for the bulls when you add it all up.

So even if the next few weeks provide another anecdote upon which arbitrary indicators like "seasonality" can be built, I'd attribute this year's seasonal YER to this market and economy, especially because the rest of the year has seen the antiseasonality trade prosper.

P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.