The run up in the stock market had been breath taking, the only close resemblance were those violent rebound during the Great Depression. This alone should send out red flags to all bulls or buy and hold kind of traders. We have recommended getting out of the market at 8,400 simply because at that time, evaluations were already irrational and stocks were priced in for a boom (not a recovery). What we didn’t see coming was the quick devaluation of the dollar to inflate equities. Our advice of going to emerging markets at the time however was on the money! […]

I wish we at Alphas Edge could say that we are surprised by the recent markets move, but we are not. It looks like the dollar will be devalued much further swinging the pendulum closer to the “other abyss”. We are in the middle of a 6 month rally where common sense and evaluations were tossed out the window being replaced by manipulation, fraud, make belief balance sheets, devaluation and bailouts. This is all clear evidence that Thomas Jefferson was right about the bankers. […]

Its starting to feel like the needed correction will never happen. Everyone knows that the market is overvalued, yet the cheer it onward. We officially have jumped from on bubble to another bubble. Personally, I find it extremely amusing watching the lams head into the slaughter. The same folks that fell for the tulip bubble, the tech bubble, and the housing bubble will surely fall for the equity/dollar devaluation bubble. But I’m sure most of folks are calm and confident behind our solid group of leaders such as Berne Frank, Turbo Tax Timmy and Obamacare. […]

The double edge sword still continuers as the dollar weakens against most major currencies. A decreasing dollar has correlated with an increase in equity prices. With the VIX this high, the market can move dramatically in either direction. The next few months for the market will most likely be a period of heroes or zeros. […]

If the market traded on data along, I would expect a positive open on Monday. Positive momentum should last until late Wednesday. The real story is Thursday, 550K is much higher than most people are expecting. Obama just had a speech 1 week ago how unemployment rate was half of what it was when he took charge in January. […]