A few stats as the rigging of the U.S equity markets reaches epic proportions.

Regards - VHF

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MARKET WRAP – STOCKS HIT NEW 52 WEEK HIGH

TPC

March 23, 2010

Equities powered higher today by 0.7% after the SEC imposed a new rule banning all selling at the New York Stock Exchange. Of course, we’re just kidding, but if I didn’t know any better I’d have assumed that the SEC banned down ticks at the NYSE. The rally over the last 6 weeks has been really breathtaking. If you’ve bought stocks in the last 4 weeks you’ve experienced just 4 down days. If you’ve bought stocks in the last 32 days you’ve experienced just 7 total down days.

Many reputable news sources are attributing today’s move to the existing homes sales, which were actually in-line with expectations and show underlying signs of continuing weakness. The truth is, this market is rallying on very bullish sentiment, fearful short covering and technicals. In other words, no real news.

In addition, investors are very eagerly running into stocks as earnings season begins in a few weeks and shorts slowly begin to throw in the towel as this market simply appears unbeatable. We’re almost certainly setting up for another “sell the news” earnings season at this pace. And if earnings even remotely disappoint we could see a substantial “sell the news” earnings season.

The amazing stats just continue to pile-up:

• The Russell 2,000 has rallied 18% in just 6 weeks.
• The S&P has rallied 12.5% in 6 weeks.
• The SPY and Russell 2,000 have rallied in 25 of the 32 sessions during the move higher.
• Banks have rallied 18% while rising in 26 of the 32 sessions.

Perhaps most amazing is that most of this move has been on very little news and light volume.