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First Some Music

www.youtube.com/watch?v=Sm1q1XoN_Qo

darn good video quality for the 70's i might add.

Second "what is QE and why is working so well"?

Clearly it's not the economic recovery we can point to when it comes to equity prices. Just as clearly "the purpose of QE is to drive down rates to finance Big Government." And yet we have a truly amazing "unintended consequence" of "profits through the roof" which obviously neither the Fed in general nor the Chairman in particular can either anticipate nor explain. So let me: i call it "scaling the economy" and it has the added value of being easy to explain even in layman's terms. In short "subtract all the math and all the Fed is doing is what Henry Ford did with the Model T...just with money itself." By that I mean Henry Ford stated he could make a fortune selling 500 dollar model T's through "economies of scale." In other words via the revolutionary production process of "mass production" he discovered that "quantity is a quality all its own"...in the form of profits. And so it appears Chairman Bernanke et al have discovered as well. Instead of "scaling production" in my view what they are doing is "scaling the economy itself"...as if to say "we'll simply create a market for dollar denominated assets by lowering the cost so much people will feel impelled to buy." I say COST because DEBT IS EXPENSIVE due to QE. By the same "token" though (as in "flip the token over") "you can therefore argue equities are dirt cheap." And "buy they have." The amazing part being that this is being done in the middle of a MASSIVE war effort that appears to be expanding! It's one thing to tell the bears "beware the bull"...but quite another with all the bears in hibernation...or worse...to argue "keep buying." But that is exactly what i would be recommending at least over the immediate (meaning three months) term. Money flows have turned MASSIVELY going into this year...and still the bulk of market participants are finding a way to get caught short. This can make for an impressive "higher lows" to "higher highs" stair stepping effect that basically obliterates all bearish trading strategies save one: start buying. If so I would argue "beware the Apple effect"....bull market corrections are notoriously violent.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.