Well, the stock market certainly likes the compliant Fed.  As noted over at NFTRH.com, the Biotechs have retaken the leadership mantle, or at least joined the Banks and Small Caps in a leadership role.  Here’s the Russell 2000 boinking new highs.

Let’s look at some signs beneath the surface.

First off, the TIP-TLT inflation expectations gauge, looks okay. It would support an ‘inflation trade’.

But Silver vs. Gold is having issues, and as long as it does a green light indicator is not on for a commodities-based ‘inflation trade’.

Palladium-Gold continues to dump out and thus, taking this one indicator in a vacuum with the assumption that it would prove as useful in the future as it has in the past, it gets one step closer to a bearish macro signal.

The implications?  Well, one would be party on Garth but remember to sell and take profits if a mania in stocks whips up in the coming months.