New All Time Highs

Yesterday we hit new all time closing highs in the S&P 500.  This after falling nearly 10 percent less than 3 weeks ago.  I don't think that has ever happened in the history of the stock market.  We are living in unprecedented times.  The liquidity is overflowing.  There is literally too much money out there sloshing around.  That is the only way you drop 10%, and go up 10% to new all time highs in less than 3 weeks.  

Excessive liquidity has a way of exacerbating moves on the upside and the downside, but mostly on the upside.  Because that money has to go somewhere.  Either stocks, bonds, commodities, or real estate.  Yes, it can go to cash, but with ZIRP, money will flow to one of those 4 asset classes.  

Now that we are at all time highs, the bloggers are backing to being very bullish, after being very bearish in October.  Same old, same old.  I don't believe that just because they are back to bullish, we are going to go back down.  However, it does mean that the upside is fairly limited for the next few weeks.  After that, we can probably keep going higher because TINA.  There is no alternative.  Until of course the market cracks, and then there is an alternative, which has been ignored: cash, or cash equivalents, i.e., short term bonds.  

Short term, it will be fairly quiet, so not much to say.  The lower the volatility, the less there is to discuss.  I am down a fair amount on my Treasury position, but it is a medium term holding.  Looking to hold for most of November.  Not much to do in the equity space right now.  I missed the move, unfortunately, and I see little opportunity there at the moment.