"I do not believe the market is in a bubble" was one of my favs. Have you ever heard that one before and when? Another was when The Bernank dared to mention the two words "unfunded liabilities" in a brief discussion of the true debt of the nation and was quickly cut off by the senator asking the question. The ultimate answer to the "real debt" - they came close to $30 trillion - which is about $110 trillion short of the real answer (think unfunded liabilities). Fannie and Freddie were also whisked by in the questioning. Its like these things don't even exist (cause if they did, we'd be up shit creek without a paddle).
I will tell you what is real - the coming financial collapse. Whether it be thru the failure of the quadrillion market for CDS, the destruction of the world's reserve currency, the collapse of a debt ridden entitlement state with over one hundred and twenty trillion in unfunded liabilities - heck, you complete the list of potential disasters there are to many for me to list here - add 'em all up and you will grasp the real reality, the real truth. Not one thing they tell you is real.
I have been fretting March for some time. Knowing what to think about sequestration is impossible. They even batted around the possibility of nullifying the notion yesterday in the testimony. Really? At this time all I can say is remain patient with the markets (if that is possible). I do believe we're very close to the top, and that March will prove to be a very pivotal month.
We lose a Pope tomorrow - let that soap opera begin and bring on Peter the Roman.
On to the Markets -
SPX Daily - All I can suggest it to let the trade com to you and not force anything. "Knowing" where this market is headed in the near term is a very dangerous proposition. Yes, the charts look like they have turned and a measurable pullback or worse appears to be in the making, but you never know dealing with this crowd. Take the data releases yesterday - confidence and housing - again, really? No telling what the rest of this busy week of data will hold. I personally can;t wait to see how high the GDP number will be. That should be a good laugh.
Minis 30m - nothing has changed over the past few days - 1491 still major support and it looks like the PPT will be defending 81. I want the 67 to 60 area and the island and major gap still sit well below. The minis sit here at the 38% retracement off the top at 1501. Anything above 1511 and you may want to reconsider any short positions.
More to come below as usual.
Have a good day.
GL and GB!