It's that serious of a problem. Remember how when Obama first took office and everytime he opened his mouth the market tanked? He was constantly asked about what he thought of the market's fall and what he was going to do about it and he said he didn't follow the market, nor should anyone else. It will do what it does.
Then, someone got to him and educated him on the ramifications and he quickly changed his tune.
Yes, it sounds conspiratorial and yes, it seems like an attempt to excuse the rally away from anything other than it just going up.
But markets don't just go straight up like this. They stairstep and there is a level of fear out there to not be left out. As I always say, people are more afraid of missing rallies than losing money. However, the best technicians are at a loss because no TA works these days, It just defies all logic. When you then look at what the Fed has done and is doing, it starts to make sense. Then guys like my friend in the 'biz', Greg, who actually works at one of the big firms in NY comes and tells me that they hear from the Street level that there is a ton of this going on. That is, money being diverted into the market to stabalize it.
Now, we're stabalized. However, the continuation seems to be more manipulative than anything. And I don't mean in a bad way. Just that there seems to be a concerted effort to try and 'keep it going' to raise the levels of the averages.
Now the DOW said today they are changing out GM and AIG for CSCO and Travelers Insurance. Those should help the DOW gain because CSCO could easily run up 20% in the next year. However, it won't help the DOW go back to where it was like a move of GM from $1 to $10 would do.
