Daily Comment

Well, the market just kept going today... and it went pretty strong. Breadth measures were decent and took out recent highs. So muchfor divergences. Sometimes trends end on this sort of push... sort of a final 'all in', but I certainly can no longer claim divergences in key metrics. I think its all stupid and a bunch of 'career risk' managers buying the markets here... but they can do that for a while... certainly into quarter end. I can't imagine buying the market here, or even holding it. These valuation levels are just ridiculous. But this is what is going on... it must certainly be respected, but not feared. This is one hell of a shorting opportunity. SPX is almost on its 20 month average. Sentiment is euphoric that the recession is behind us and we will be back to peak earnings and peak margins. Does anyone realize how silly that is? Let me ask the bulls: what have we done to fix the problems that brought us 2007 and 2008? That is rhetorical of course; the answer is NOTHING. (which is really sad)

Here is one question: what are Tbill yields doing tanking like this?