http://www.youtube.com/watch?v=SjS60TaD_J8&feature=related

I wish all the politicians in Washington has your ideals and work to make it so. I know quite a few people who’s disillution and cynical about what have transpired these days including me.

http://www.zerohedge.com/sites/default/files/images/Euphora.jpg

In a post above:”To preface (and my working assumption): Fed purchasing of GSE paper and Treasuries provides liquidity injections to primary dealers who in turn have newly available play money used to drive up stock and commodity prices. The evidence provided in the site below shows how, as of last week, the Fed is now indirectly and in a round about way buying Treasuries, without having to do so directly through its QE program, schedule to end next month.”

I understand the purchase of the Treasuries/GSE paper, but for those Primary dealers to sell they had to have bought new issuances/exchanged value ($$s) to being with, no?

Apologies for what may be an elementary question…Thanks.

http://www.youtube.com/watch?v=Vb7XftlaPGQ

http://dshort.com/articles/2009/bear-market-volume-getting-technical.html

And another piece on bear market recoveries.

http://dshort.com/articles/2009/bear-market-recovery-curve.html

And inflation adjusted prices of the S&P composite index with secular highs and lows (and where we stand today)

http://dshort.com/charts/SP-Composite-secular-bull-bear-markets.html?SP-Composite-secular-trends-with-regression

Please explain what you mean by negative reversals and charts screaming danger.

Each opened up and went down but also closed a fair amount above the low of the day. There was no strong move up at the end of the day as we have seen in many recent days.

Thanks

I am curious when you speak of equities and other holdings if you are only speaking of a trading account or your entire portfolio.

You sold your equities last Friday. Does that mean that you personally have no money invested in equities now or that you just sold all the equities in your trading account? No core holding in a retirement account?

I provide the following quotes and the site (at the bottom), for the purpose of raising a question to you and others.

To preface (and my working assumption): Fed purchasing of GSE paper and Treasuries provides liquidity injections to primary dealers who in turn have newly available play money used to drive up stock and commodity prices. The evidence provided in the site below shows how, as of last week, the Fed is now indirectly and in a round about way buying Treasuries, without having to do so directly through its QE program, schedule to end next month.

Now, my question: While I fully agree with your point here regarding sentiment, is it possible that this and other developments demonstrate that we live in truly ‘different’ times, and consequently scenarios that provided direction in the past, as to where the stock market is likely head . . . no longer apply?

I realize there is no definitive answer to this, but conditions certainly do require that we examine how profound developments over the last year or two place in question all assumptions that provided fruit in the past.

“Just last week, when the auction results were announced it was trumpeted to great fanfare that there was “more than sufficient” bid-to-cover, “strong demand” and all the rest.

“And now it turns out that 47% (!) of the bonds that were taken by the primary dealers in that auction have been quietly bought by the Fed and permanently secreted to its balance sheet.”

“And oh, by the way, don’t expect any stock market weakness while so many billions are being shoveled out the Fed and into the pockets of the primary dealers. They’ll have to do something with all that freshly minted cash…..”

http://www.chrismartenson.com/blog/fed-buys-last-weeks-treasury-auction/23880