SP 500 and NDX March Futures

Possible intermediate top forming here. Do not expect it to be simple or straightforward. Keep an eye on Bernie Bernanke.

SP March Futures At 10 Day Moving Average Support

My portfolio extends a big 'thank you' to the wiseguys for dumping this ramp up in stocks on about the same day as last year, selling APPL on the news for example. lol.

Note however that the 10 Day Moving Average appears to be holding, and having a bit of a bounce up after the close. Another move up for a wash and rinse?

I still find it hard to believe that there will be the 'big dump' of about 100 SP points given Benny's pledge of easy money POMO's but stranger things have happened.

Stay tuned.

Volatility Then and Now

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.

VIX - Nov 1, 2010 to January 18, 2011

 


VIX - Nov 1, 2009 to January 18, 2010




VIX - Nov 1, 2009 to Feb 1, 2010 

  

SP 500 From November 2009 to February 8, 2010



Gold Daily and Silver Weekly Charts

Benny and Timmy know they are blowing a bubble in financial assets.

They just do not want you to know it.

Note: We may have seen a new trend set in the gold market here. The new trend is marked in blue.