The market futures were flat early last night until a sudden explosion occurred blasting them way up. Why? Because the BOJ or the bank of Japan announced a massive new QE program. Their market sky rocketed. We followed along on our futures. Desperate times in Japan equates to higher markets. As I've said many times, only when the global economies truly recover can the next bear market begin. That's when the fed will stop bullying the world in to stocks. So we blasted up at the open, spent most of the day drifting slowly lower only to recover quite well at the end. Our fifth gap up in two weeks which is unheard of and none of them have been filled. Absolutely amazing. Never happened before and don't think it will again although why not a sixth gap up on Monday, even with tiny black candles.

Usually the third candle is exhaustive. Five haven't yet. The fed Governors from around the world getting the job done. This is what they want. They're getting their wish fulfilled. If they keep the market up they know they'll give their economies a boost. It's really as simple as that. So today was yet another effort to rock markets higher and it was successful. As a final attempt to keep markets rocking up the BOJ also announced they will spend trillions with a t to buy ETF's. Yes folks, admitted interference. Our fed hides it. They don't care. They're so desperate they want short sellers to know that they're not only against fellow traders but against the fed. We're in la-la land. Kudos to the global banking effort to create inflation through the stock market. Keep those 401 k's growing boys and girls. That's all they ultimately care about.

Froth is blasting up once again. I won't try to make too much out of it any longer because clearly it's not a important a barometer as it used to be. We had unprecedented levels of froth for over eight months before we finally had a pullback. That said, it's hard to worry about current levels, even if the number we get next Wednesday which measures action through today's close, indicates an all-time low in the number of bears. We started the week at 16%. Are we back below 13%? If not it will be real close. Either way it will be real close. A very bearish number. I just think it would be inappropriate for me to not mention the normal risk involved with this type of reading but it really hasn't meant anything for some time now. A new market? Maybe. Adapting is the name of the game. It'll be in the back of my mind but you can't let it stop you if you really find a good trade setting up. You should at least respect it but definitely not let you stop from making trades if something sets up what you think is solid. Summing it up, froth is nasty. Bad! Probably irrelevant.

So where do we go from here? Hard to say exactly but here's what we do know. Markets love easing and low rates and bulls love multiple gaps on their side. We are very overbought short term thus it's best to wait for at least a little selling before getting back in. We still have poor looking monthly and weekly charts and that should not be forgotten for the big picture. It can come back to haunt at any time but for now the trend is up with dips being bought constantly. With RSI's on the short-term index charts in the 70's, even if we rally some Monday it would still be best to wait as the more overbought we get the harder the selling off the top. When those MACD's unwind a bit on the short-term charts along with those stochastic's and RSI's then you can go in and find objective set ups for long plays.

I'd still shy away from shorting as there are no sell signals and again, five open gaps for the bulls. One day at a time here.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

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