And of course, investor sentiment is as high as their complacency. Molecool has some secret sauce indicator that incated last Friday a blatant federal manipulation. If you can "backstop" a bank, why not the whole market....
And for those who want to somehow insist that federal intervention in the market is not being done, why not just read the Federal Reserve notes and speeches from Bernanke, they come right out and say they are supporting the equities market, just as they put a huge bid under the bond market last year also. What I am saying is---they admit it!
Many timing models say the next 2 weeks is ripe for a turn down, and even some Astro events would imply big volatility soon.
But the big printing press of the Fed's is unlimited. And "they" can buy every dip, until confidence comes back. A deadly dangerous game they play...the deeper we get, the more there is at risk, which then makes sense to "invest" even more to protect the trillions that have already been thrown at this problem. Trillions invested, a few hundred billion in GDP as the result so far....not a good return on investment IMO.
But keep in mind....they can keep buying the dips, to "restore wealth". "Equities" sounds so solid, but it has nothing to do with wealth. A stock price is only a fleeting electron passing through a microchip, that is what our entire system is based on. The current P/E ratio is around 23, that is if you believe the earnings, it might really be around 60 or even 100. PE of 23 occurs at tops, not so called recoveries or bottoms.
This is all a bunch of hogwash, but standing in front of the printing presses could doom your account.
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Insightful and Useful Comment!