You Never Know Until You Do.. Or, You Don't

For sure, you never know at the time what the plan is. If the Fed is artificially acting as bidder of last resort, then that raises serious questions as to why Market Makers and Specialist who are obliged by law to take on that responsibility are being overshadowed? Is it that the middlemen know something and the spreads at which they are willing to take an offer are so ridiculously low that the Fed has stepped in?

Market makers have sure been busy busting apart price patterns with false breakouts to earn a living lately.

And why, if the Fed is indeed bent on being in the market, assume to keep it artificially high (think about prices a year ago and the sentiment then versus prices now and the sentiment-you have a huge conundrum as there was HOPE a year ago and now the economic news is nowhere near what it was back then-still we are higher) then why in the world will they not go to $115-this chart below shows at least 10 opportunities, and we've seen what they can do when they want, in which the SPY was within $.20 or $.03 of above $115 intraday. Why won't they close it above $115? Is it a case of the higher you go the further you fall? I can't imagine a reason why mutual funds wouldn't want to see that to stem the outflow of money, hedgies apparently or someone apparently is on the other side of the trade with all the distribution.

One thing is for sure, we're not getting the story and there's a reason for that, I'm sure it's not a story that would inspire confidence in our markets. What will happen though when there really are no bidders and the Fed finally steps back? We've already seen a couple examples this week of the circuit breakers fail.

This market is far more insane then I've seen in 12 years and I thought Q1 2009 was crazy.

Here's the chart

Maybe we'll find out, it won't be before what's going to happen, happens though.