Sep 16, 2010

Short-term: 3 yellow, 1 red – overbought, due for a drop, so what
Intermediate-term: 3 green, 1 yellow – no sign of anything but continued up
Stock targets: 61% swimming, 24% neutral, 15% sinking – getting close to extremely one-sided

Markets continue to drift higher on zero volume. I understand that short-selling has been basically banned – and it is unwise to short anyway when the Fed/dealers are simply creating buy money from thin air. But this market is very seriously primed for a massive and overdue external news shock.

That said, zero-yielding assets (eg commodities) are looking great here. Is this what the early stages of hyperinflation look like?

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