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Wall of Worry Wednesday – View From the Top

Here's your "rally."
You'd better be making money in the markets because your cash, your home, your savings, your income – everything else you have has been slashed 5% in the past 18 days in order to make you feel better about the markets.  Americans have roughly $100Tn in Dollar-denominated assets and it cost us $5Tn in less than 3 weeks to prop up the markets.  Was it worth it?  Will the next 5% be worth it too? 
Welcome to the World of weak-Dollar policies.  The Fed confirmed it's rumored $1Tn extension of QE on the 24th, by extending ZIRP through 2014 (and we did the math on the price of that policy last Thursday), $1Tn is nearly a 10% expansion of our Money Supply so of course the Dollar begins selling off but one would think the equally easy ECB would balance it out a bit but, so far, not at all as the Euro was already unnaturally weak against the Dollar out of fear of a currency collapse.  As that comes off the table, even the Trillions of Euros being shoveled into bailouts seem RESPONSIBLE when compared to our own Fed's constant money drops.  At least the EU demands to see some sort of balance sheet improvements before they hand out funds…
SPY 5 MINUTESo far, the chart remains the same and we have the same gap up from $131.20 on the SPY to our $132 ceiling (see yesterday's notes) that we have had day after day after day as the pre-market programs do their very best to give us the illusion of strength – even while our currency is collapsing and that $132 we can get for one of our SPY shares buys 5% less stuff than it did 3 weeks ago.  
But the chart LOOKS good and we got our official "golden cross" yesterday but, funny thing – it did not set off a buying frenzy – did it?  One might pause to wonder why buyers are ignoring the most significant technical buy signal the markets can give if one were inclined to think but that is an activity that is actively discouraged in America these days and believe me – they'll know if you try it!  
That's right, we are now arresting people for tweeting as homeland security yanked Leigh Van Bryan off a plane, detained him and sent him home…


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