FED ACHIEVES HIGHER PRICE GOALS
Do higher prices for "stuff" make you feel better about things? Only Chavez or Ahmadinejad would be happy since PC NIMBY American's keep being self-destructive. And, if you're an American you've probably forgotten we have an entire Department of Energy which has only produced more bureaucrats and patronage then more energy. You see folks, whenever there's a problem with something important (energy, education, banking and etc) we just create a new agency or department and assume it will get fixed. What a bunch of suckers we are!
There is only one thing innocent citizens/investors can do--get long whatever it is they say they're "fixing". In this case that would be commodities and oil.
Not much happened Wednesday beyond higher prices for stocks and commodities overall. There were two light
actions just to keep things well-lubed for the few traders remaining.
Volume was half-day like while headlines scream "markets post Lehman highs" and etc. Breadth per the WSJ was positive once again.
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is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.
McClellan Summation Index
is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.
is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
Continue to Concluding Remarks
So you probably think I'm just being too cynical and negative. Why? Intuition tells me taxpayers have no doubt spent more money for the bureaucrats at the Department of Energy then we've gotten back with increased supplies. Even a caveman would conclude this as correct.
Anyway, the tape is the tape and one must respect it even if flawed by low volume. We go with it but must admit with the VIX at very low levels, volume light, many indicators flashing overbought and etc, January scares me to death.
Let's see what happens. You can follow our pithy comments on
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