Admission of Guilt…

That’s it. I can die and go to heaven. Don’t you love this guy?

Ben Bernanke said that his job is to “push” investors into risky stocks and commodities. He has admited it without shame!

EVERYTHING YOU KNOW ABOUT THE MARKETS ARE WRONG. Every technical indicator is worthless. FREE MONEY TRUMPS ALL.

Today, gold and silver are spiking higher and soft goods are dropping sharply. Soft good prices are quickly moving to the point of demand destruction, so naturally, the FED must “push” investors out for the moment. Plus, Uncle Ben told us they are rising because of emerging markets demand. That is exactly what they told us when oil spiked to $150 in 2008 and is a lie now like it was then. That move it oil was the template for all commodity prices now.

Look. The major indices see immediate futures buying on any 20 point Dow dip. But this market has more cracks than the San Andreas Fault.

HERE IS A WARNING FROM YOUR RESIDENT STICK IN THE MUD.

A few months ago every analyst and the media told you that the PC business is dead. All that was left was to bury it.

Stocks like NVDA, WDC, STX, AMD, DELL, QCOM and all manner of small and large semiconductor and semi-equipment issues were the walking dead. Remember?

We bought many of these stocks in July/August. We have also sold several of our holdings as they had reached our price targets, though we still own several.

Today the sector is the market leadership. Folks are tripping over themselves to buy the group. Technicians are screaming “breakout”. They are also 50-100% higher than where they were trading in August.

This is very similar to when most analysts downgraded the group in the summer after they fell 30-50%. Now, those same analysts are busy upgrading the group.

CAVEAT EMPTOR

Today is the most powerful up move since December 1st and before that on September 1st. It is overwhelmingly positive with massive gains in most every sector and the major indices are trading at new post-crash highs.

The first day of the month has been up for the past 6 months and has added almost 850 Dow points on just those 6 days or over 40% of the 2000 points added since September 1st. It is all about deploying assets into the market, nothing more. And even with this widely known fact, today is very powerful, hitting buy stops above Dow 12k and SPX 1300.

I see folks tweeting about RSI and MA’s and divergences. They have been rendered meaningless by the one-way market. And the Friday pullback is adding much fuel to the fire. Many stocks are up 4-8% today on no news.

After today’s action, there will be no active shorts. There will be plenty of frustration over missing the boat and how expensive stocks are, but anyone who would have ventured into betting against the rise will be officially sidelined. Even when the market eventually drifts or plunges lower from lack of buying, nobody will sell or short because it has proven–time and time again–to be too dangerous. Of course that is when disaster will strike, but in the meantime the market has completely and totally vanquished any sense of caution or skepticism. It is totally counter-intuitive to world events, but it is the market reality. You will soon see outrageous price targets for all the major averages.

Whether it takes a “moron” to just keep buying or it is our Uncle Ben controlling the market, it simply does not matter. The bullish action is simply overwhelming. BTW–This is not “towel-throwing”. I’m just calling it like I see it. I am going to be selling my remaining long positions from last year in the immediate future. It is simply too easy.

The technical situation of gold speaks volumes–AFTER a decade of uninterrupted gains…

I had worked on a bunch of intermediate-term charts late last night for publication today. But I will not publish them as they need to be updated to reflect todays action. Notice my mistakes!

What do these protesters want? Do they want Democracy? Or is it “Burkas & Beards”?

B&B is a whole new story…

AND:

Can/Will the Israelis keep the Canal open?

DISCUSS