15 January 2013

SP 500 and NDX Futures Daily Charts - Wall St. In Denial

The Wall Street wiseguys would like to hand this rally off to mom and pop and their funds. But mom and pop are still largely sitting this one out. And it is making them nervous.

Wall St. blames the government, and the uncertainty over the debt and the currency.

But this is the usual deflection and denial. The markets are so obviously foul that normal honest people want little or nothing to do with them. And they are voting with their feet.

It could be that the Fed and the Administration will choose to inflate another stock bubble, and people will, as some ex-Fed governor turned stock analyst used to snigger, will drive the baby boombers back into stocks because they have no choice.

Those who remember the market doldrums of the 1970's will know that you can cheat the people only so much, and then tend to go away for quite some time, until the next gimmick shows up.