Expecting New Highs

S&P futures took out the 1320.06 cash area overnight, which exceeds the high of Friday. I mentioned yesterday on Twitter that 1320.06 would project new highs soon. True to form of late, the market has chosen to run higher.

I think the Facebook IPO is the hook that is keeping investors content to keep pushing the buy button. I think this is not a company but a phenomenon. It is possible to use it for 10 years and never pay a dime. Same with Google. Both business models can be replicated by a teenager with a laptop and a good supply of Mountain Dew.

Just as the news media sold the Bin Laden "killing" as a euphoric event, Facebook's IPO feels like a distant but intense echo of 1999/2000. Back then it was the whole market that was manic. Now it's just Apple, Google, and Facebook, and they're about to tear each other apart.

I'm anticipating new highs over 1333.47. I'd expect non-confirmations between the Dow, Nas, and S&P. Listen to the news, there should be ebullience everywhere. But the time to be bullish was last October.