Saturday, February 04, 2012


Recent US $ weakness has help fuel a low volume rally that is challenging 1370 bull mkt highs. A break and hold of previous highs could lead to an attack on the ALL TIME HIGHS of 2007. Hard to view current action as Bearish, or occurring within a BEAR MKT.

The story of recovery and job growth are saturating the media. What isn't is the exponential growth in money printing and backstopping. What FED and Central Banks have tripled the money supply in an attempt to paper over the worldwide crisis, and in many ways save the very perpetrators of the crime.

The VIX continues to fade for now, so we will watch for increased volatility. 10 YEAR yields still cannot manage to gain above 2%. Housing prices continue to fall year over year even with historical low mortgage rates, no recovery in price means no recovery for all those underwater in home value.

Excess Reserves not getting into economy....the REAL PAIN many feel is being masked...


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