The bears, who got nuked yesterday, threw in the towel today, and we had an orgy of buying (and probable short covering), on a big inrease in volume. broke threw every resistance level that coud be thrown up, and are now head into a new bull market. Hell, all we have to do is print money! Why the hell didn't we think of that before?Now those newly unemployed people (450,000 again this week) can marvel as their stocks (assuming they own any) shoot skyward, although the prices of food and gasoline shooting skyward won't be quite as pleasant. But, we've fixed the financial system, the economy is on it's own.
The Russell 200o made a big move today, and appears to be ready to assume leadership again, If it does, I think we can expect at least another week of insufferable bullishness in the mainstream media.
One thing I was concerned about yesterday wasn't whether or not the market was going to go up, but whether it would go up fast enough to keep up with the drop in the dollar. Here is the SPX priced in gold. I would say it isn't.
It looks even worse priced in oil. One reason I have never been a gold bug is that I never believed our leaders would be irresponsible enough to monetize debt. I was wrong.
The last chart isn't a chart, it's the front cover of Barron's. This should scare the crap out of you.
I will have the new highs update shortly.
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