Today is slap bang in the middle of a risk window which closes tomorrow the 19th. The trading system is still waiting on some indication of a trend change to confirm a sell signal. Given the stout A/D line and tame bullish sentiment, any turn down will probably only be a brief pause that refreshes the torrid bull. The next risk window appears to be the middle of next week which will encompass the FED meeting announcement. Whether Juice It Janet adds fuel to the bull fire or douses it with cold water, will probably determine if the next risk window contains a turn or acceleration event.
While looking at stock/bond data this weekend and pondering the FED, the take-off words of Buzz Lightyear kept ringing in my ears, "To infinity and beyond!". If the FED stays on hold near zero next Wednesday with Super Mario and Abe pumping as hard as they can, Buzz's words may indeed be prescient. If rates are now frozen for the long term near zero or below, amazingly high P/E's can be justified by yield starved investors, maybe not to infinity, but close enough to get a glimpse of it.
Regards,
Douglas
