Love is in the air

The market is all lovey-dovey. After Valentine's Day, the market has fallen back in love with risk assets. Japan kicked it off with a whopping 7% rally in the Nikkei and that's filtered through into Europe and commodity markets.

Some of it is a reaction to the strong finish in US stocks on Friday but there is certainly a component of optimism.

We won't really know if it's genuine until the US returns 24 hours from now. The temptation is to look for consolidation but short-squeezes tend to come on fast and hard.