As you may recall, there was a steady ramp higher in stocks at the end of 2009 until about January 19, 2010. There was also a corresponding drop in the VIX volatility index to rather low levels.
There was a precipitous sell off in stocks in the latter part of that January as the market corrected from an artificial and highly overbought condition.
Beware of artificial complacency for it always masks a fraud.
This year the Fed will be adding over 100 Billion over the next several weeks. So we may have a bit of a timing issue. But these sorts of things rarely end positively except for the insiders on Wall Street.
Some things to watch are the 10 day moving average, which is now around 1278 on the SP futures, and the bottom of the short term trend channel which is around 1270.
Wall Street banks are run primarily for the benefit of their own insiders, first and foremost, pure and simple. And a generous helping slops over to the their employees and constituency in media, universities, and politics, but little is left over for productive public efforts. And the distortions that such short term financial gimmickry and wealth transferrals promote is an impediment to a sustainable recovery.
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| VIX - Nov 1, 2010 to January 18, 2011 |
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| VIX - Nov 1, 2009 to January 18, 2010 |
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| VIX - Nov 1, 2009 to Feb 1, 2010 |
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| SP 500 From November 2009 to February 8, 2010 |
