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US stocks closed near or at the highs of the year, on one of the lowest volume days of the year.
Texas Instruments offers to buy National Semiconductor.
If I were of a mind to look for a top this would be about the place for at least a minor correction of 3 to 5 per cent. But with Benny in the game and the banks skewing the trade, it does not appear likely unless there is some exogenous event.
Capitalism is a very good system. I would like to see the US try it out again. The first step is to commit your economy to legitimate price discovery and fair and efficient markets. It takes work to achieve this, as the idea that markets are naturally perfect is as great a canard as the perfectibility of central planning by an autonomous elite.
"Unfettered capitalism is a revolutionary force that consumes greater and greater numbers of human lives until it finally consumes itself." Chris Hedges
The pigmen and piglets, pounding the table for more, are going to be in for quite a surprise when what goes around, comes around.
The failed bear raid in the metals today was so clumsy that it was almost embarrassing.
There was disappointment in those who were short the metals, or had lost their positions, and were feeling discouraged that silver and gold had failed to break down for them today and stay there as planned.
It's like a nightmare, isn't it? It will only get worse. Cry me a river...
At some point this rally is going to fizzle and correct. I would not get in front of it until there is a sold break of the trend, and the wiseguys start hitting the exits.
The problem is that the volumes are so light that people are concerned that they will miss out on the drop, and so they keep shorting it trying to pick a top and front run a decline.
Better to miss the first leg than to exhaust yourself, and be too weary and dispirited to play it when it comes.
I am using shorts only to hedge my bullion and mining longs at this point, along with a few other devices. It helps me buy these dips as we saw today and hold them with some conviction.
The long term trend is so obvious that if one does not get it by now you may as well start keeping bees in Sussex.
The bear raid on the metals is coming in as expected. This always happens when there is a dodgy Non-Farm Payrolls report, which is most of the time these days. They cannot break the trend it seems, but can make it uncomfortable to go against them in the short term, those who are not able to keep the longer term trend and overall economic landscape in mind.
As for US equities, I could not bet against broad stocks here until I see a genuine failure of a trend. The monied interests seem determined to take this tragic comedy higher, because they do not know what else to do, but to deceive and loot, and do again what has failed twice before. They may not care, as long as they end up with rents and income producing assets.
There was a double dose of Dick Grasso and David Kelly on Bloomberg this morning, extolling the virtues of Wall Street and the wonders of the economic recovery. That was painful to watch. The brood of vipers on parade.
Who cares? We'll all be rich, with more dollars than we could have ever imagined. Just put your faith in the financial powers and your own false pride.
And if and when that falters, then turn on the weak, the unfortunate, and the different in your prideful anger, and bully and abuse them for their 'failure' which is dragging you down. Since we're perfect, there must have been insidious influences working against us from within. Certainly there was no fault in the status quo and those made wealthy by deceit, fraud, and human misery.
This is what passes for reform in some circles.
I am afraid it will be getting worse before it gets better.
