08 May 2013

SP 500 and NDX Futures Daily Charts - They Broke Out the Pom Poms Today

Someone describes this as 'the rally that everyone loves to hate.'

I think that is a euphemism for a cynically led rally with a very narrow participation that will head for the exits at the first whiff of trouble and take it down ten percent in a Manhattan minute.

And in the meantime, the cheerleaders are out on the financial networks, urging mom and pop to get in on their good thing.   Some of them fill out their outfits better than others.

Don't get in front of it. But the steadily rising prices are leaving many incredulous for a very good reason. 

This reminds me quite a bit of 2006.  The economics blogs have all retreated into inane details and are missing what is going on as they 'missed' the housing bubble.  It's almost funny.

Fraud is pervasive.  And when the next financial crisis comes, the same jokers will say 'Wow how did we miss that? But our models are still right.'