Transcendental Market Truths:
The Market:
The only problem some have now is the answer to the question: Just how serious is the Fed going to be at QE2? If the Fed is printing money out of thin air and buying stocks with it (and I have no direct evidence of this, but observe very suspicious activity to indicate they are, probably through their subsidiaries, the Wall Street banks), is it possible that stocks won't just simply grow to the sky? The late rally yesterday in the Dow was extremely suspicious, especially since it corresponded to a dollar-weighted call-put ratio of 29.77 on the S&P 100. Yes, that's right. There was 29.77 times as much money spent on call options than put options. It sounds like the hand of the Fed coming in to push the market back into an uptrend channel.
Or, it could have been traders who are now convinced that the Fed will do anything to levitate asset prices. They may be like the hedge fund manager who blatantly proclaimed on government financial TV station CNBC that Bernanke has "written a put under the market". Whether he's right or not, he probably has the money to push the market up, at least until the day when Bernanke himself disavows that he has written that put. And, I have to wonder: if the statement was not correct, why hasn't Bernanke said it wasn't? I take it Bernanke likes the feeling of levitating the market even if he hasn't personally been in there doing the heavy lifting.
Apple:
Apple was bought very heavily yesterday, as money flow is zooming higher.
Dow Industrials:
I finally got a sell signal on the Dow Industrials yesterday. The closing buy price is 11111. |
