The Long Tail

The long tail of overvalued stock market pricing, courtesy of tax payers (via the Fed) and forty years of trickle down supply side economics is in your face right now.

With the low volume of trading inside the Bubble only a small portion of asset holders will be able to escape with their profits as inflation shows its face. But first, the light rollover into bonds from stocks is occurring, thereby allowing interest rates to ignore reality. The CPI and PPI numbers in early January may be the start of that reality.

Interesting Note..

It appears that the Guru’s on CNBC are saying that they are going to wait until the New Year to take some profits. This could make the next 5 trading days very interesting as the hot shots try to game each other and try to sell.

Also of note, see the composite arithmetic index chart for the Fangs, they were not able to challenge the highs over the past few days. You can see the recent cup formation that has not had follow through, potentially deadly to long trades within the cup.