Clueless Tuesday

 Well, for once we actaully moved somewhere. Not very far, mind you, and volume wasn't terribly impressive. Not that I would be buying now, with tomorrow looming. The reaction to the election, which is probably already priced in, might be muted, but i suspect we will get a pretty big reaction to the FOMC.  Despite the mov e today, we are still rangebound, but that will likely change tomorrow. Which way, I don't know, but either way I don't see much good coming out of the Fed. If we go postal with the printing press, will the market go up fast enough to keep up with the drop in the dollar? And if he actually does the responsible thing, how many overleveraged companies will go belly up? I guess we will find out tomorrow.

 The Nasdaq continues it's slow, steady march upwards. Two months with barely any pullbacks is something you don't see very often, and probably won't continue long. But then again, if hyoou need to outrace the decline of the dollar, this is proably the place to do it.

 The Russell 2000 made a big move today, but is still below resistance. The 20dma is providing support here, but ist is flattening out. I expect one pr the other to give tomorrow.

Has QE already been priced into the dollar? It looks like it to me, but it also looks like there is a very tough resistance level  at 78.28. The dollar really hasn't dropped much in the last month, and the market (other than the Nasdaq) really hasn't rallied much. Gosh, you think the two are related?

This is an oddity. Ever since late 2007, the Yen and the SPX have moved in nearly opposite directions, and the crash of 2008 was immediately preceeded by a huge rally here. However, since September of this year, both the Yen and the market have rallied. I'm not sure why, but it does bother me when obvious relationships break down, because they frequently re-assert themselves just when you aren't expecting it.

We shall see tomorrow how many clueless Democrats are being replaced by clueless Republicans, and how the market reacts to it, but the real cluelessness comes in the afternoon, when the FOMC speaks.

I will have the new highs update shortly.