For perspective it is worth noting that this "everything rally" (including markets like corn that appear to have positve fundamentals) date to the Fed's Jackson Hole Soire' of August 27th. Look at the charts, and look at a lot of them- they all look alike.
That is when the nation's economic bureacrats took a moment away from playing with the deer and antelope to casually suggest that they would QE the bejesus out of anything or anyone who dared mess with their recovery.
Heven't a clue where this leads.
Economic numbers generally don't indicate an alarming acceleration of decline but certainly don't indicate any improvement. They're typically just good enough that talking heads can all chime in "better than expected" and the bank prop desks and hedgies can jump back on the computer and start wanging on the buy key.
Stock volume is lousy and depending on who you isten to is comprised of somewhere between 30 and 70 % high frequency and computer trades.
Insiders are selling 1411 shares for every one they'e buying and the public is gone from the market, for good, I'd guess.
Even though this has an ominous feel, I don't think you'll see is a repeat of the flash crash of 5/6. The PPT (Plunge Protection Team) is real, as Paulson reminded anyone who would thing about shorting the market in his day. I'm thinking somebody got called on the rug big time for eing asleep at the switch on 5/6.
Neverland ends sometime but I'm guessing not until after the elections. And then I'm guessing with an event, excuse, diversion, not with something that will be viewed as internal to the markets.
fwiw, h
