If you think Wall Street and our stock market are detached from reality...congratulations. In my 50 years, 30 years trading experience, I have never seen anything like this.
We have record numbers of people on food stamps (46 million) our debt levels are the 2nd highest ever and closing in on WWII numbers. We have lost at least 15.4 million jobs which are not coming back. See today's report here. http://www.foxnews.com/politics/2011/09/15/jobless-claims-rise-again-428k-weekly-first-time-benefits-requests/
Inflation has picked up and the Euro and at least 5 European countries are on the verge of collapse. Our trade deficits are horrible. And our market is rallying??
More good news. http://finance.yahoo.com/news/Mortgage-default-warnings-apf-157937671.html?x=0
What we are seeing is absolutely unprecedented. We have a sick stock market distorted by the FED, it's member banks buying equities with free money, and QE3 coming soon. I really don't think it's short covering. I think it is positioning just prior to an epic collapse.
I parked my money on the sidelines long ago and bought precious metals. If gold cracks 1750 on the low side I am buying more. At this point, I don't even care what daily excuse is given for a market completely detached from reality. Who could trade this market based on historic indicators? It is insane. Sooner or later, reality is going to take control and we are going to pay for this terrible distortion. All of the retirement funds in the world, predicated on never ending 8% returns, are about to get a huge dose of reality. Oh, this is going to be ugly.
Don't get tricked into this. http://www.zerohedge.com/contributed/intervention-reeks-desperation