The only thing wrong with the image above is that it's from March 2010, or on one of many previous plans agreed upon. But, markets don't care about this and just thirst for any deal even if memories remain short. These euro zone fixes seem ephemeral and need implementation to stick.

HFT algos are programmed to pounce on these presumed fixes and have been active in driving stock prices higher this past week. Let's face it; this is the time of year bulls can make their year with good fees and bonuses on the line. It shouldn't surprise there is some money coming out of bonds and into stocks as institutional investors emerge from safe havens.

Its earnings season in the U.S. and Alcoa's (AA) poor report was even more quickly forgotten than we suggested last night. In fact the stock moved from down 4% to nearly unchanged at one point since it's in the buy program basket for the DJIA which, by the way, has moved to near unchanged levels on the year.

Gold seems an all-weather investment rising on safe-haven status and now on hopes for more inflation vs deflation. This was also reinforced by the release of Fed Minutes Wednesday afternoon showing a desire by some members to increase QE (Quantitative Easing) as deflation was much feared. Also from the minutes it was clear the overall consensus was the Fed had done all it could do at this time making the entire release somewhat murky.

And, as indicated gold did rise on a weaker dollar and stocks soared once again on the euro zone "fix" idea. However, indexes fell late on news from FT (them again) that banks would need to recapitalize or sell assets. Bonds were weak (a poorly received auction and some switching to stocks) and commodities overall were mixed.

Walmart (WMT) was a market leader today noting a 3 month increase in sales for the first time in 9 quarters. At the same time, this negative story for retailers appeared in the WSJ regarding shipping and inventories as the holiday season was now in everyone's crosshairs. Other market leaders were in the financial sector as the last euro zone plan is thought to give them some relief.

It's been typical for market melt-ups to feature lighter volume and so it was Wednesday. Breadth per the WSJ was positive and we're quickly now short-term overbought.

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The NYMO 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.

The 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.

The VIX 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

You see we're now short-term overbought per the NYMO which could push somewhat higher. This is paired with the still high, but declining, VIX which is odd.

The late FT article linked above is telling meaning the euro zone fix remains an illusion.

Thursday will bring Jobless Claims again and more earnings from many financial institutions which have been lowered perhaps engineering beats.

Let's see what happens.

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Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.