Happy New rabbit Yr.............sucky for small economies, Best for Con economies

hi there pple

long time no blog......2010 passed like flies and it was really a better year than most pple have expected......
A not so bad yr for me as milestones of life have been done.......BUT thats not impt....today while on the train it inspires me to think how on earth STI is soooooooooooo useless but Dow, S&P500, Nasdaq, Dax, FTSE100 are sooooo powerful............

One main reason Liquidity......the bearded Ben prints money like water flowing down the grand canyon........it is a extraordinary party here........this is the greatest equity rally ever!!

There is always big question.......what happens when the party ends.......
does valuation still plays apart in those mega super mkts? Was there even a credit crisis? is demand on world recovery real? With commodities prices so high, are US inflation numbers even correct? Unemployment numbers the ADP and the NFP numbers always neber match...... sometimes these question really puzzling......but as i always say, US financial engineers are the best, they can sell options on Ice to eskimos then repackeage to a new pdt and sell to man on the street........Money make pple think and exploit the weakness of man....the word GREED is the most powerful in this context........

enough of my crap lets see some charts

this is the daddy of all rally, unstoppable in the last 3 mths, for the past 7 days have been breaking new highs every single day........a correction is needed but it just wouldnt come, 12 000 gone in a breeze, everyone wants to sell at a higher price and everyone is waiting.......when all man wanna rush out the same door, it will happen......but for now this Dow train just keeps going and going and going thanks to Ben

Dow transportation Index(so call mkt first indicator)

interestingly, the index that lead the Rally in the early dec is now the weakest sector, the Trans is near the 2007 high..........watch out for the diamond formation form recently, if its to breakout, this massive wave will probably propel this rally even further......

FSSTI (should be rename call Jardine Times Index)

think the pic is self explainatory

Good day happy trading