S&P 500 Update – Change You Can Believe In

This rally, that is now five weeks old, has only had five cumulative up days to define the entire price move.   This price movement is in a very tight linear regression line.  In other words, this entire move is driven by program trading.  Program trading using derivatives, that is.   And, if you go back to the start of September of last year, we have only had seven cumulative up days off of that bottom until today.   Five whole months, seven up days marking this entire move.   Without looking, let’s assume 21 market days of trading for each month.  That’s closing in on 105 market days and seven up days for this rally.  Baaahhhaaaa!!!   Oh yeah!  I’m bullish!   I’m bullish on reality.  That is, the status quo is in serious trouble and the engine of democracy is starting to crank over.    

This is a very sick market without buyers.  Instead it is being driven by Wall Street firms through the use of leverage (derivatives).  With tens of trillions of dollars of bailouts, the only way Wall Street’s rigged system of Frankenstein financial fraud stays afloat is through the use of even more leverage.    That means it remains incredibly vulnerable the minute the next gopher rears its head in the status quo’s economic strategy of Whac-A-Mole.

What did Obama say in his state of the union speech the other night?  “We’ve come too far to turn back now.” 

Indeed.  This president has not created a single net-new job during his candidacy.    And, the vast majority of the jobs that have been created under his term are poverty-wage jobs without benefits.  If it were up to the even loonier Republicans, we’d be in an even worse predicament.  Obama’s policies are simply George Bush’s policies with smoother rhetoric.  President Obama is  right.  We have learned too much about how his party and the Republicans manipulate and bilk our government to allow either party to continue with their smarmy back room deals. 

Change you can believe in.