Lying Lip Twitch…

Did you see Uncle Ben on 60 Minutes? A very telling performance. You don’t need a body language expert to know exactly what is going on. When telling a lie, his lip twitches while speaking. When telling the truth, there is no twitch. Watch the video tape.

Did you notice during which topic he twitched? Talking about “buying Treasuries to lower interest rates” and “not printing money”. I’m beginning to believe the vast Zero Hedge conspiracy theories more each day especially witnessing last weeks market action.

And BTW–I though Scott Pelley was a smart reporter. Not one question about FOOD, ENERGY and COMMODITY INFLATION!

I’ve posted a chart here showing the recent action in the SPX. The pattern that had been developing was a perfect Head & Shoulders top. Normally, that is an unmistakable bearish pattern, especially coming off a big run up. But like so many “obvious” technical patterns, it was blown out by last weeks monster 3 day run. Now it looks like a perfect double top. But who wants to get in the way of free money forever?

Just remember, this is the season where silly things are believed. Sugar Plum Fairies dance aloud in the heads of money managers and Primary Dealers. But very little should be believed. The market is ramping all manner of stock but is clearly lying, like a rug, again.

Can this continue? I guess. But the cycle that started in September has ended. This is just the “ether”. It can be profitable, but you had best be careful.