Flight to Safety Evident

While the market uses any lever it can to get the SPX up new nominal all time highs, where as I mentioned earlier, transaction costs alone should make it worthwhile, assuming there is still some interest and volume.

However, the flight to safety is evident everywhere. Credit may be being used to try to pump the markets and they seem to be trying really hard and not getting too far, but the distribution in them is already done, furthermore, the credit markets have a very itchy trigger finger a the slightest appearance of SPX/ES/VWAP failure has seen them make some big sell moves.

TLT has seen a lot of 3C accumulation and even price appreciation, volatility has as well as you have seen over the last several weeks. The fear is evident in the way stocks like ORCL are being sold off, sell first and best and ask questions later. Swiss 2 year rates hit a new low with a negative yield, that means people are willing to take a small loss to park money in a safe place.

The Cyprus situation is no where near resolved and getting worse by the day with today's ECB deadline of Monday to accept a deal or lose all funding, likely sending Cyprus in to default, Russians sweep in and pick up everything on the cheap including a new naval port and more than just EU currency dynamics have changed. Then we have our own uncertainties in the Us as a number of economic reports are showing, consumers are afraid of what Congress might or might not do.

Today's EU PMIs were a much bigger deal than most would think, especially the German one, German attitudes are going to change very quickly about these bailouts and Merkel knows it (not that they haven't already), Germans will soon be feeling the same pains as the rest of the EU.

I have to take my wife to a Dr. appointment, but I'll be back to try to make some sense of what's going on in Cyprus as is changes by the hour.