Good Morning. Well we got that out of the way. Like it or not, at least we know where we stand. The Fed is no longer talking. They are too busy printing. Amazing that Fed is printing about $1 trillion per year and will stop the program when labor improves. Yet when asked what the metrics are to determine when labor has improved, Bernanke said that was not figured out yet. Those were not his words verbatim but the message was. Crazy.
And speaking of crazy we are likely going to experience even more crazy market price action. We are likely going to see even more mind boggling divergences, scary charts, etc. But it is not something we can fight. With $85 billion in capital indirectly flowing into risk assets each month (by pushing capital out of MBS for example) the markets will always have a willing buyer. Even though in the process, the natural bid, that being short sellers is going to be all but gone.