Yesterday morning the markets were hot. Red hot. The major indices have been in an uninterrupted uptrend since June 4 but the previous four days have been a ramp-fest, with Apple running almost 40 points in those four days and setting the tone leading to the test of the yearly highs. Never mind that the biggest IPO in history, Facebook, lost $50 billion in a quarter; Apple made those gains in a few days.

Speaking of Facebook, many are blaming Cramer, Thiel, Morgan Stanley. Remember who set the private valuation for the company of $100 billion long before the IPO. None other than the Vampire Squid themselves, Goldman Sachs. And it appears they are getting away with it.

Back to yesterday. Markets appeared to make a perfect double top with the April high. Volume at thirteen year lows. No earnings reports or government interference to deal with. And the Europeans are still on summer break.

All hat, no cattle.

Most market participants will remind you that following price is what is important. But as I’ve said many times in the past, the market lies like a rug. Sometimes for weeks or months at a time. This has been an Apple/Google market with the mega-caps holding everything together. Some will also tell you that the market’s gains have nothing to do with the hope of more free money. We shall soon see.

In the meantime, circling back to the defensives makes all kind of sense to me.