With central banks at the helm, certain stock market days are of the up no matter what variety. Up no matter what days consist of squeezing shorts, assuring corporate buy back buyers the Fed has their back and if necessary, central banks buying the balance to make sure it all goes up no matter what.

Ordinary herdsters never override their reptilian brains. Until there is nothing left of them but a bloody pulp, they treat all stock market price movements as organic. As long as friends of the Fed are operating at a profit, there really is no way to short a stock, place a stop and make a profit. If you are a retail trader, your firm is an open book with respect to the friends of the Fed who run your stops. Guess what, your firm wants your stop to be run.

The highly esteemed minds of traders cannot fathom that more goes on outside of the formal system than ever takes place within it. The dialog off the record between the Fed, friends to the Fed, corporate buyers and foreign central banks is constant. Laws are enforced selectively and ignored depending on who it is who is violating them.

So, when does one go short? Until friends of the Fed cut and run there will no way to make a profitable short sale. When will they cut and run? They won’t as long as the Federal Reserve can guarantee them risk free profits. Corporate buybacks will also continue as long as they are convinced the Fed has their backs.