Isn’t it cozy that our markets are locked in a well-defined trading range and that an uptrend remains somewhat intact?

There is so much money locked in the closed loop of the financial system, never to get out, yet there is no liquidity in the market whatsoever. You could probably push it over with a breath of warm air.

Here we are holding at DOW 12500, SPX 1330, Nasdaq 2850 & the Transportation average near 5000. Virtually all markets are up for the year. Yet Europe is classically insolvent and we are in the jaws of a recession that started months ago.

We continue to track the action of last year, with a peak in early July and a sell off into August. Last year it took the SPX to the 1100 area and that would simply be a 10% drop from here. That’s not too bad, is it? No really, do you want large exposure in today’s market?

Alas, the “unseen hand” will be there to prevent short sellers from having profits for more that just a day.  And don’t worry about Apple. Nobody else is.