Things aren't what they seem-Don't let stock market fool you

When the SPX closed above 1000 this month, it was the first time since November that it closed 15% above its Simple Moving Average since 1999. The SPX has not closed 20% above its 200 day SMA since 1983.

In no way do I think today’s economic conditions are similar to what we were looking at in the early 1980’s. In fact, conditions are just the opposite. Then the Chairman of the FED had brought inflation down from double digit levels by raising interest rates to over 16%. Today the Chairman of the FED, Helicopter Ben, has interest rates at all time lows and creating money out of thin air with the “printing press running full time.” This is highly inflationary.

Click here to view SPX and Simple Moving Average