All of the market indexes rallied today on the news of a deal in Washington, but the issue of this country's burgeoning debt problem remains. I fear that we are going the way of Greece and other countries in Europe who promised everything to voters and refused to face reality. We can only afford our debt now because interest rates are abnormally low. The same politicians who told us we could not afford 8 trillion dollars of debt are now are telling us 17 trillion is no problem.

SPX jumped $23 to close at $1722 and RUT gained $13 to close at $1092. This was a new all time high for RUT and SPX is only a few dollars off of a new all time high as well. Trading volume jumped up to 2.3 billion shares of the S&P 500. Trading on the NYSE increased 7% and but trading on NASDAQ only increased 1%. Volatility collapsed almost four points to close at 14.7%.

This market appears to be set on continuing to make new highs. This sets off my personal alarms, but we have to respect the tape. Trade small and hedge yourself appropriately.