Most of the excitement Friday revolved around economic data. The Employment Report (157K jobs added vs 185K expected & prior revised to 196K from 168K) and the Unemployment Rate rose (7.9% vs 7.7% expected & prior 7.8%). Within the data bulls focused on the large higher revisions from December, November and March 2012. Those months revealed a large add to new jobs. However, November and December would normally be holiday oriented temp hires. Neglected by bulls was another 170K jobs were lost during the month. But let’s not spoil the party with real data.

There was indisputably good data including: PMI Mfg Index (55.8 vs 55.5 expected & prior 54.00); ISM Mfg Index (53.1 vs 50.7 expected & prior 50.7); U of Mich. Consumer Sentiment (73.8 vs 71.5 expected & prior 71.3); and, Construction Spending (.9% vs .8% expected & prior -.3%). The only fly in the ointment was the disconnect between U of Mich. rising Consumer Sentiment and the Conference Board’s plunging Consumer Confidence from Monday. Which to believe? I tend to go with the Conference Board since the U of Mich. data is too heavily weighted by stock prices.

It probably matters little about data frankly since there’s only one real actor in the market and that’s the Fed’s QE program dishing out $85 billion a month to bulls. You should note, including the ECB member countries, 38 countries are now engaged in QE.

The choice for traders Friday was to buy the market. Are there any negatives as stocks soared Friday? There’s the debt ceiling (sort of cancelled) and then the “sequester” (well, bulls have “time” to play). Bad news this week like GDP, Jobless Claims, beating much weaker earnings, Conference Board’s Consumer Confidence, Apple (AAPL) and rising interest rates are just brushed off.

If interest rates cause mortgage rates to rise that may slow housing or could cause a sudden rush to buy from off the sidelines.

The dollar (UUP) was weaker while gold (GLD) was only modestly higher. Commodities (DBC) were higher on the weaker dollar and higher energy prices (USO) and (UGA) while base metals (DBB) also rose. Bonds (TLT) were weaker in price higher in yield.

Stocks rallied sharply and broadly with most sectors participating relatively evenly. The headlines scream “Dow Closes Above 14,000 for the First Time Since October 2007”. Missing from that line is the bear market that followed.

Volume, despite all the bullish hoopla, was still light as we revert to perhaps the old normal volume from 2006. Breadth per the WSJ was quite positive.

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