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Alphas Morning Stock Market Update

You got to love the market makers, they can push the market whatever way they want to at will. That’s not much of a surprise, considering they are the bulk of the float and working hand and hand with government + central bankers. Yesterday on CNBC, 4 so called “experts” at noon all informed Rebecca that they were sellers into the close. She said the first thing that came to my mind, if you are all sellers, that means the market will be up tomorrow. She was right! At the same time, I couldn’t agree more with the experts, I was also a seller.

Today’s market gains does come with a price, the double edge sword is still slicing. The dollar is falling hard and rates are going up. Commodities are all up this morning and with every tick higher the danger of hyper inflation because more and more probable. My biggest fear is slowly taken shape and there is no way Bernanke and government will be able to reverse its outcome without significant damage to the US economy once it starts.

For as much as the market is up this morning, the VIX is barely down. Option guys are unwilling to put their money on this rally being sustainable (at least not today). The bond auction yesterday was an absolute disaster, with interest rates flying up on the short term notes. Next long term auction is going to be bloody if the market keeps rallying until then.

With every uptick higher I am more and more bearish on purchasing stocks. Stocks are way overvalued; they are trading at P/E rations higher than during the greatest bull markets. The undeniable truth is that most corporation stock value is ZERO, it they were liquidated today, the cash would not be sufficient to pay all the senior debt holders. This means that you can only be buying stocks for two reasons, dividend (lol) or revenue growth.

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