Sure only 86M shares were traded on SPY (see Dave Fry's chart), which is about what's usually traded on a holiday but why should we let that bother us. As Dave noted in his post last night:
Predicting market movements is a waste of time even for the best strategists. This is a period when following technical systems pays off especially remaining disciplined and systematic. This includes having cash available to move as conditions change. It’s fun to predict the future marked by witty and amusing comments. That’s just entertainment.
Following trends is no different than following the money. Over the past 5 years this has led to following gifts of liquidity from the Fed and other central banks. A more dangerous method is to guess central banks next move. Janet Yellen has already laid her marker down the Fed will continue to be accommodative for a long period ahead. Bulls interpret this as bullish for equities and being nobody’s fool, they’re just going with the 5-year historical trend. The ECB is expected to provide more stimulus at its next meeting Thursday. The PBOC is expected to do so as well soon even as the finance minister has said they wouldn’t. Bulls obviously bulls don’t believe him for now.
With bulls believing the “all clear” has been sounded by Yellen, bulls can return to a “bad news is good” modus operandi enjoying or ignoring bad news.
As pointed out by Zero Hedge, "While QE may have tapered to a "measly" 55 billion per month, on just the first day of April risk assets experienced the additional benefit of over two full months of QE injected into the stock market in one single day!" And now you know where yesterday's buying deluge came from."
That's right, I showed you the chart yesterday that highlighed the $250Bn worth of "reverse repo" handed out to the banks on the last day of the month to goose the markets and, unlike Jan 1st, they didn't drop it back to $50Bn the next day. Instead the Fed fed another $113Bn to the Banksters yesterday and, despite the fact that it was a slow day, they jacked the indexes right back to record highs again.
Does it sound like a conspiracty theory? Oh grow up! I order you to watch Jon Stewart's interview with Micheal Lewis, which begins at about 8:45 in this episode:
Yes, it's RIGGED. It's rigged and it takes the cooperation of EVERYBODY involved to rig it. The SEC has to look away, your broker has to lie to you that you are getting the "best executions" while they are SPECIFICALLY selling better executions to HFT houses. The media has to cover it up as well, lest the consumers get outraged. That's why the FBI has launched an investigation and not the SEC but, at this point, why trust the FBI?
Certainly you can't trust the media – I've been telling you this for years. Did you even know that the was just an oil spill in Lake Michigan? Yes, it's BP again. That's OK though, turns out Bayelsa has 40 oil spills per month – thank goodness they don't have them nasty Government Regulators getting in the way of progress in Nigeria! I love this quote from AllAfrica.com:
Sadly, the very existence of the people depends on the environment, which is being destroyed with impunity due to oil and gas activities, crude oil thieves and illegal refinery operators.
The "news" you get is manipulated by the same corporations that are commiting these crimes. I was watching Bloomberg this morning and I saw something outrageous. Lufthansa's pilots are striking in Germany and, as they usually do, the networks like to pull randome srikers from the crowd to ask them questions, rather than allowing the actual leaders of the unions to speak on TV. This way, they hope to present the striking workers as radicals with unclear agendas and hopefully catch them saying something that damages the cause, rather than interview the people who have been elected to speak for the group.
But that's not enough for Bloomberg, they actually went out and found a guy named Streicher (get it?) to interview but the joke was on them as he held his own quite well. That wasn't what I thought was outrageous – what was outrageous (and I hope the boys at the Daily Show pick this up for me) was that the pilot knew enough to talk into the camera and the guy from Bloomberg said to him "no face me." It's not in the clip but I swear that's what happened live on TV. Obviously, not facing the camera makes him seem less sincere – this is just one of the little ways the corporate media manipulates the message for you!
IN PROGRESS
