T/A ETF AND INDEX

[DoubleTop]

You underestimate the effect of Billions upon Billions of Dollars that the Fed will inject via Quantitative Easing - Round #2. The Fed made it clear that is going to happen. INFLOWS of cash into the Stock Market will trump a Jobless Recovery and Excessive Foreclosures for as long as the Fed grows the Money Supply.

In the late 1990's, companies with NO Profits were trading at $300 per share with infinite P/E Ratios! INFLOWS of cash, the Fed flushing the Banks with CASH just before the so-called Y2K Crisis, can even trump fundamentals (common sense) for a long time time. When the Fed pulled the excess Cash back out of the banks/economy (because the Y2K Crisis never occured) the Stock Market then proceeded to collapse.

The Market can get dislocated from reality for many months or even years based on how fast the Money Supply is Growing or Shrinking as controlled of the Fed. First the Fed caused the Stock Market Bubble in the 1990's. Then it caused the Stock Market collape. Then is caused the The Housing Bubble (extremely low intertest rates) and then the Housing Collapse. One bubble after another in an attempt to prevent the Normal Growth / Recession cycle.

What underlying 'indicators' are you looking at that supports a move to 1240 but not to 1600 ?

DT