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Remarkably thin volumes.
This market is hardly resilient to say the least. But it is capable of selectively ignoring reality, denial-wise, until the facts become overly intrusive to its smug and complacent repetition of the unsustainable, floating higher on the swelling monetization of the Fed.
To that extent it reminds me of the economics profession, which is quite adept at eluding reality when it does not fit its models and fashions, muttering to itself within deep wells of subjectivity, calling its jabbering science.
In Egypt's sandy silence, all alone,
Stands a gigantic Leg, which far off throws
The only shadow that the Desert knows:
"I am great OZYMANDIAS," saith the stone,
"The King of Kings; this mighty City shows
The wonders of my hand."— The City's gone,
Nought but the Leg remaining to disclose
The site of this forgotten Babylon.
We wonder, and some Hunter may express
Wonder like ours, when through the wilderness
Where London stood, holding the wolf in chase,
He meets some fragment huge, and stops to guess
What powerful but unrecorded race,
Once dwelt in that annihilated place.
Horace Smith, Ozymandias, 1818
More signs of an intermediate bottom, but confirmation is everything.
The money printers are making a significant stand here, and calling out their supporters in the associated professions and public forums.
I suspect they will fail, and perhaps spectacularly. But timing is always quite difficult.
The Axis Of Those-Who-Have-Stuff-the-US-Wants
As a reminder, as skeptical as you might be, do not get in front of this market. If you cannot buy into it, wait for it, but do not short it with all the liquidity being provided directly to Wall Street from the Fed.
Having said that, this market is thin, and weakly held. On an event it could drop precipitously. It is giving off many topping signals, and signs of instability. Bernanke's Fed is fighting it with billions in liquidity given to the banking system. Unfortunately this money is not finding its way to the real economy, but is largely consumed in bonuses, lobbying, disguising corrupt balance sheets, and speculation.
Dangerous fast market conditions can develop quickly in response to some trigger event in these types of markets, as a result of the reckless and irresponsible fiscal and regulatory climate in the US.
