Tuesday, 22 January 2013

1pm update - capitulated yet?

Another day higher, especially for the Transports which is almost 1% higher. The VIX is still holding slight gains, but its all minor noise. The broad market upward trend from the Dec'31st low...continues.




Anyone seeking a major collapse wave anytime before the late spring, is nothing less than outright crazy. Even crazier than those who think the economy recovered since 2009.

It really is simple...

1. Bernanke print. POMO, 45bn per month..EVERY month.
2. $ to primary dealers
3  $ find their way (don't ask how) to the financial institutions...who BUY..
4. Market up.

Repeat step'1, until 'desired wealth effect' achieved.

Unlike 2009, 10, 11, where the buying was limited...this is not going to end, and the Fed is likely to increase monthly purchase amounts sometime this year.

I'm actually growing tired of seeing the 'hopeful' doomers out there. Its a waste of time people, we ain't going down. Look at that transports chart. 

*If we're going to see some action in the VIX, its more likely Thur/Friday, and even then, we'll be lucky to see the low 16s.

There just isn't much going on this week. Next week is loaded though, not least the Q4 GDP first reading.

Yet even the low sp'1440s would barely count as a 'moderate' decline, and right now...that looks difficult.

back at 3pm.