NEW YORK (TheStreet) --The stock indexes capped off a huge August with the S&P 500 hitting another new all-time closing high, 2003, up 6.63 points. The DJIA was up 18.88 points to close at 17098.45 while the S&P 500 finished higher by 6.62 at 2003.36. The Nasdaq gained 22.58 at 4580.27 and the Russell 2000 was up 8.40 to finish the month of August at 1174.35.

For the month of August, the DJIA was up 3.2%, S&P 500 up 3.7%, Nasdaq up 4.8%. and the Russell 2000 up 4.8%. That is some huge upside.

But the August volume was one of the lowest in years. The S&P 500 Trust Series ETF (SPY) - Get Report had one up day the entire month where the volume was over 100 million shares.

Thus, this all-time market high was achieved on air. The more I hear Wall Street pundits say it does not matter, the more bearish I become.

In addition, do you ever here that the Barclays 20-Year Treasury Bond Fund (TLT) - Get Report is up 17% for the year to date and the Russell 2000 is virtually flat? Can you say "growth slowing?"

This stock market has become nothing more than a gambling casino created by the Federal Reserve.

Former Reagan budget director David Stockman recently had a great quote saying the markets were like a branch casino of the central bank. Stockman said, "The Fed has destroyed the money market. It has destroyed the capital markets. They have something that you can see on the screen called an interest rate. That's isn't a market price of money or a market price of five-year debt capital. That is an administered price that the Fed has set and that every trader watches by the minute to make sure that he's still in a positive spread. And you can't have capitalism if the capital markets are dead, if the capital markets are simply a branch office -- branch casino -- of the central bank. That's essentially what we have today."

When we learn that three Federal Reserve governors were active traders in the stock market in 2013, you know the game is rigged. Whatever happened to conflict of interest?

The start of September will have the S&P 500 at an extreme overbought level. The DJIA and Nasdaq are still deeply overbought. There is no way that I will play from the long side. I would rather sit in cash and be long some inverse exchange-traded funds. This overbought market is not sustainable.

When the hedge funds decide to sell, the abyss is not far off.

When there is one point of upside in the S&P and 99 of downside, according to my algorithm numbers, what side would you rather be on?

On Friday, I added to my ProShares UltraPro Short QQQ (SQQQ) - Get Report with an extreme oversold number. On Thursday I covered my (MX) - Get Report short flat.

At the time of publication, the author was long SQQQ and short MC, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.