Now where do stocks go? Here's a hint: Ho ho ho

Now where do stocks go? Here's a hint: Ho ho ho: "One Grinch that could spoil the stock market rally this coming week is the bond market, should yields rise too quickly. There are a few pieces of economic data, with the most important Thursday's retail sales, and the market will also be digesting $64 billion in Treasury auctions.

"The path of least resistance is still higher for stocks,"said Barry Knapp, head of equity portfolio strategy at Barclays. "There's favorable seasonality, the economy is getting better, and unless the Fed shocks us and starts [tapering] in December, I don't think the market will go down.""

"I think the rate-hike cycle will be more aggressive than it's currently priced," he said. "The five-year part of the curve could really sell off sharply."

Emerging markets also bear watching, he said. "I'm hard-pressed to find any investors that are bullish on emerging markets. … I can't imagine they'll have many friends when the Fed starts the process."

'via Blog this'