When we summarized the overnight session just before 7 am, we titled it appropriately enough, "No Melt Up (Yet) In Boring Overnight Trading [5]." Little did we know, actually scratch that - we knew full well that moments later the ramp would make its now daily reappearance. Because if it weren't for the 7th straight day of no volume, no news levitation, someone, somewhere may have gotten the impression that the market is desperately manipulated and artificial, and that if it weren't for a constant ramp higher, confidence in authoritarian "markets" may disappear, and the retail investor may pull even more than was pulled last week, following a brief inflow in the market in early 2013.
[6]
And while volume was absolutely abysmal as reported earlier, the driving factor was, in addition to today's modest, and now daily, $1.5 billion POMO, Kevin Henry going absolutely medieval on the VIX, which plunged to the lowest since early 2007, and printed last in the mid 11s. At this rate, we get single digit VIX in under a week, at which point we urge the president to strongly consider an Executive Order allowing, and even demanding, a negative VIX.
We would comment on the variety of other utterly senseless observations witnessed in today's "market" but it has become completely pointless. The entire market has entered the 2013 version of the dot com frenzy, where only buying and momentum begets more buying and momentum. It will continue going up and dragging everyone in it, until it no longer can.
At that point everyone who is long will certainly be able to sell to everyone else, and book profits, before the perfectly orderly unwind takes the "market" to its perfectly programmed 2% correction (because in the New Normal 2% is the old 20%).