Into the trading week, (Feb 27- )

Despite a slew of divergences going on in the equity/ risk assets, SP closed green for another week.  Throw in a rolling over Dow Transport since mid- February vs. DJIA, spiking Brent, spiking Gasoline and market makes no sense to veterans of the game.   After all the ‘crisis’ we’ve gone through the last ~5 years, it’s no wonder picking up a textbook on investing no longer works in many aspects.  Worldwide QE’s are flooding liquidity into the market place, this wasn’t a section in many texts years gone by.  It (rally since Oct.) will probably end in a commodity linked led correction, but for now the market has shown resiliency day after day.  The whole market seems to be hedged going for VIX –VXX ETF for protection. Protect, but don’t sell single stocks is the game right now.

Heading into the trading week, we have a few hours of window dressing left before the end of European LTRO#2, Bernanke semi -annual testimony (nothing new likely) and Global (gov’t )PMI’s.  After a week or so of quietness as far as newsflow goes, the upcoming week may turn out to be the opposite as ‘Bears’ will likely try to stir things up.