QE that is. The SPX is up 45 points or 3.4% since Tuesday morning.

Commodities, commodities, commodities. Higher prices will be a great demand enhancer!

Remember, QE helps only financial assets and nothing else. So buy until it doesn’t work, then run.

And GDP? It will be up .5% next quarter with the market at new yearly highs. #TIMESTAMP

THE WORLD IS SAVED ONCE AGAIN and many stocks are up 5, 10, 15, 20% today. Semis stocks are soaring. Oil stocks are soaring. Commodity stocks are soaring. Not because of demand, mind you, but rather the promise of free money directed into the vein of the markets. Fundamentals, except those that are negative, are irrelevant.

Ladies and gentlemen, you are living in times more historic than the Great Depression. The financial system has failed, crashed and is totally and completely bankrupt, yet our system continues on with markets trading a spit away from all time highs. It will be remembered along with Tulips, Railroads, Radio, PC’s, Biotech & Internet. But this time it will be remembered as “Financial”. Traditional metrics are a joke because interest rates are broken. Everything you know is useless except to buy every technical breakdown.

It’s all great and dandy and has worked and continues to work. BUT HERE IS THE FAIR WARNING: The risk is that just one time it will not work. All it will take will be one failure and the house of cards will come down When that happens, you will extremely fucked, royally. And so will everyone else (be fucked that is).

They stopped the almost inevitable end of summer swing lower with the perfectly leaked proposal for more “stimulus”. The money goes right into the market, where it belongs and the economy stays fucked.

Welcome to our world!

And remember, this is the most important day of the Century!

Today is the single most important day of the Centrury.

1. Apple dissapointed and the stock is down a point or two.

2. A plethora of companies reported light earnings and warn going forward.

3. Sandy Weil, man who built TBTF and the Architect of the Financial Crisis, is calling for a breakup of the big banks.

4. The FED leaked their plans for more QE before the election.

Can you guess which way the market is going this morning? Simply take everything you ever learned and throw it out the window.

Now get with the program!

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.

That “someone” went on a mad binge to sell the Dollar starting at about 10am this morning. Have a look at your 5 minute chart for the $DXY and see their handywork.

And everyone knows that if you want the market to move, start with the Dollar…