10 April 2013

 Medium term will be bouncing higher as it lags the move in the short term indicator.

Short term back in overbought territory.

The McClellan is also lagging the Dow and S&P and remains at historically high levels.

This is truly a remarkable run.  Kudos to the money printers.  I never believed wealth could be created from nothing, but the past few years have proved otherwise.

"To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection or production, we want to create further misdirection- a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end."
-- Fredrich Hayek, 1933

Is Hayek right?  The only way I see the forced credit expansion stopping is once the US loses reserve currency status.