To be sure, companies like Apple and Intel are doing well overall. But some companies are doing well due to ongoing Fed financial support like banks and some auto companies. QE policies are designed to prop stock markets higher, and with volume light, the job is made easier. Therefore, when worse than expected economic data is released (Jobless Claims, Consumer Confidence, Retail Sales, CPI, Chinese tightening and etc) investors toss that information aside aided by more POMO. More maddening to more thoughtful people are the lies being bandied about particularly with inflation data. Food and energy prices are much higher and eliminating them from the data due to imagined "volatility" is beyond mere spin.

When I was a young college student, my statistics professor gave to each student a book: " How to Lie with Statistics." I think it must remain required reading for BLS, Treasury and Fed officials among others. Let's remember, the government has a huge entitlement liability geared to inflation statistics. They're conflicted.

Nevertheless, the bottom line seems quite apparent--don't fight the Fed. To fade their POMO activities is a waste of time especially with ongoing light volume. The Fed has stated it wants higher stock prices and gloated over its success. To them this means better 401Ks will make investors feel better about things as they claw back to even. Then those investors will start spending money, joblessness and housing markets will improve and the economy will grow.

The Fed is just repeating what's worked for them before--another bubble.

So barring some unusual unknown event the bull market will continue until June, with only minor speed-bumps, when the current round of QE ends.

Gold prices were hit hard today and some good comments regarding this come from Jesse's Café Americain and Chris

Volume remains very light while breadth was quite positive per the WSJ.

Continue to U.S. Sectors, Stocks & Bonds

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