The risk of the system imploding remain quite real. Yet today, right now, your Training is being reinforced.

In my diatribe dated December 5, 2011 the assumption was that the trillions of dollars used by Central Banks to buy financial asset levitation was successful in tipping the scales to “market-confident” regardless of economic or fundamental scenario. But there was still the danger that markets could fail.

Then, earlier this month I deemed the Training complete. Market participants will not allow a reflection of reality anytime in the near future as the financial system will be manipulated at any and all costs in order to protect the status quo. Good money will be put in after bad, until it no longer is effective. How long and how much will that be? I have no idea and neither do you.

As we have surmized, after a swift 50% retracement of the recent gains, the markets would not fall in the face of the end of the half/quarter/month and in front of the July 4th Flag Waving Holiday. It just so happens that the Europeans talked some more about saving the system on this day.

So instead of good old fashioned stock picking, we will have a market just like in the past few years, with 2-3% daily moves in the major indices, within the trading range. I wouldn’t be surprised if the market closed up 400 today as recent shorts concede and the Markup gets into full gear.

Have a safe and happy weekend!