It is all about Ben. The market is ignoring the fiscal cliff. New asset purchases, we go higher, no asset purchases, Katy bar the door. It seems unlikely that they will allow a market melt down while the market is digesting higher taxes. If they do though, the Three Peaks scenario plays out and off we go to 1100. I intend to be long biased with UVXY calls and SPY puts OTM as insurance.
It is a sad commentary we have to wait on our drug dealer to see if we can get our high on. On Tim Knight's www.socialtrade.com someone posted this chart which tells us the party is almost over and rehab or an overdose awaits. http://dareconomics.wordpress.com/2012/12/07/the-fed-has-no-exit-plan/.
Anyway, here are my charts.