Every talking head on the financial news networks are celebrating the new all time closing high on the Dow Jones Industrial Average (DJIA). Last week, the DJIA crossed above the 14,198.00 level that was last made in October 2007. Today, the DJIA is trading as high as 14,515.00 which would be another new closing high on the DJIA. Many analysts and Dow Theory followers are looking for much higher levels on the DJIA. So what are the problems with this rally if everyone is so bullish at this time?
 

What a difference one week makes! On Thursday's blog post my title was, "what a difference a day makes". In the headline driven market we find ourselves where fundamental and technical analysis count for little, the impending deflationary death spiral we were confronting early in the week melted away with one comment from ECB President Mario Draghi: "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough." That last sentence sent global risk assets skyrocketing into the weekend.