Do You See Fingerprints?

Charts: The market is in a technical rally. The charts are saying the correction is over. Sometimes charts are wrong.

Fundamentals: Corporate profits as a percent of GDP are at an all time high. The were at about this level in the 1930s. So these are the two periods where corporate profits could grow without the economy growing very much. Productivity increases are not yet peaking. Corporate America keeps getting more efficient. This is also one of the reasons why employment is not increasing.

Long War: The CIA just got bigger. CIA Director Petraeus reached out, grabbed the US Army's intelligence arm (which is called DIA), and said: "You are now part of the CIA." The media is reporting this story as the DIA is being reorganized to resemble the CIA's Clandestine Services division. Yeah right. Meet your new boss. You army maggots are going to learn the CIA way or its the highway. Next Petraeus will grab US Army Special Forces.

Petraeus got the White house to liberalize rules of engagement for drone warfare in Yemen. Petraeus asked for but did not get the right to use drones in close air support of pro-American Yemeni troops. He will probably use the drones for close air support anyway, regardless of whether or not he has permission, because Yemen is the Wild West.

The highest ranking Israeli military officer is saying Iran is not making a nuclear weapon and has no actual weapons program, only an uranium enrichment program. This directly contradicts Israeli PM Netanyahu and is actually close to insubordination, throwing Israel's top leadership into extreme conflict because the PM couldn't order an air strike against Iran if his ranking military officers disagree that such a strike is necessary. We must ask the obvious question: Does this incident look like it has CIA fingerprints on it? You tell me.