This Market is not in a Bubble
It is a house of mirrors. In fact there are so many mirrors that virtually no one knows what a real market looks like. What artificiality has created leaves investors little basis for a reality check. The double top in the S&P of 2000 and 2007 has been taken out by this mass of mirrors. I don’t believe that the S&P 666 temporary bottom of 2009 will be the low of this 17.6 year cycle which ends in late 2017.
So while CNBC continues the type of hype that we saw before the 2000 and 2007 highs, the market moves along waiting for the big event that will trigger the decline. Who knows what it will be, probably not the FED.
Watching the June T-Bond futures may be a good way to measure the environment. At the moment they seem to be locked in a trading range of 129-28 to 135-3 with a mid point of 132-16, yesterday’s low. Once the market holds outside that range we will have an indication of the future dircection of asset prices.
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