For all of you excited about the 10k dow, consider for a moment the dying US Dollar. Is the whole bull market of 2009 built on our devalued currency? Check out this somewhat depressing post at instapundit, and its accompanying chart of the DOW vs. the CPI (click to enlarge):
Seen this way, the “higher” peak in 2008 is just a double top with 1999/2000 highs. And look at us now, relative to the last 12 years…
Anyway… the rally that won’t quit continues to lazily drift up. Most of the action this week was in overnight markets, leaving the day session to flail. Many people shy away from trading options expiration day, but ironically, it was the best trading day of the week!
Two weeks ago, I pointed out that the Financials have been relatively weak. That continues to be true, and this week they were the only negative (more flat than negative, to be fair) sector. Tech was also flat. I’m sure you’ve heard various maxims built around the theme “don’t trust a rally without banks and tech.” Those who take that idea to heart know that this rally isn’t very healthy unless things turn around.
This Week
Month to Date
Year to Date
Peter Schiff made some similar observations:
http://www.youtube.com/watch?v=KLtxiqwEmSM