Tip of the Triangle or THE LAST RESORT.

The market just gave back 25% of last weeks 4 day gain. Yet it feels as if you had better “angle in” or you’ll miss out.

There is a frenzy to own the remaining favorite stocks, notably Apple. With the freeze in the fixed income market sans Treasuries, the deep freeze in anything housing-related, and the diminution of energy, mining and industrial stocks, the equity markets have precious few places to turn. The focus is on retail and technology.

The Apple/Amazon complex is sucking up a tremendous amount of investor capital. Both, combined, now equal a half-trillion dollars and have a market value now as large as MSFT+INTC+CSCO. My, how times have changed! Apple is in 2011 what oil was until July 2008; THE LAST RESORT.

The markets around the world are waiting for the big tease to be revealed. Three weeks ago, at Jackson Hole, the Fed Chairman told the world “we’ll see” about the next round of QE. So far he’s promised an unlimited swap line to try and put a “ring” around the Euro banks. There is the Twist, making sure that our rates look exactly like Japans. And the X-factor; more new and fresh cash for injection into the area of risky assets. That has been the only reason that the equity market has not cracked wide open. We have been locked in a 100 point SPX range without a breakout or breakdown. What is most disconcerting is that the range is traversed in just two days.

Markets are in temper tantrum mode, screaming for more free money. But the fundamental situation continues to deteriorate in a big way. And it is not just a question of faith or confidence, it is a fact of reality. No big free pump and the SPX will be 1050 in a flash. Another trillion and we’ll be back to 1275 just as quick.