Another glorious rally as the Pax Americana proves to be irresistible.
Stocks are getting a bit stretched, and the volumes are almost a joke. So this has the appearance of puffery.
But even puffery has its day, as the illuminaries and solons of Washington can attest.
Someone asked if I am hedging precious metals by shorting stocks and the answer is 'absolutely not.'
There is no need to hedge at this point, and stocks are in an almost pure technical trade.
And as Jesse Livermore once said, 'Never short a dull market.' The volume here is very conducive to batting the prices around.
I wanted to go to a room and quietly weep for the pitiable demise of the Dow Theory today. With the inclusion of Goldman and Visa in the Dow Jones Industrial Average, it can be considered officially gone, death by cynicism. Even Nike, which makes things, makes little of them anywhere in the US, preferring the heat of foreign sweat to mold their products.
But I do suppose that this confirms that the major growth of the US is in the rentier sector, including the production of financial instruments of dubious quality, usury, and various forms of white collar managerial abuses of ordinary people. If they could add the Congress to the DJIA it would be a coup de grâce for the real economy.
Have a pleasant evening.