Nothing seems able to destabilize Wall Street on its way to new highs. The Dow Jones appears as an infernal machine disconnected from any economic reality and set to rise forever. Neither Italian concerns nor budgetary concerns and even less the heavy correction of the Chinese stock market have led investors to press the “pause” button which could allow the establishment of a slight consolidation. Always more QE promised in the U.S. and in Japan seems justifying this bullish trend and especially as demonstrated by robotic impulse buys at each end of trading session.

Actually, financial operators have yet no reason to celebrate the latest news. The heavy stock market correction in China, affected by concerns about real estate and by the largest slowdown in the services sector, raises new concerns about the evolution of global growth. Eventually, in the United States, Barack Obama has ordered Friday night a freezing of 85 million dollars of public funds after the failure of the final meeting with the leaders of the parliamentary groups to try to reach an agreement. These automatic cuts may have a very bad effect for the U.S. economic recovery.

So, why the U.S. indexes continue to go up without any concerns? The answer seems simple and clear: no exit strategy for the very accommodative monetary policy and the debate within the Fed seems closed, the unlimited monetary printing is ongoing and the continuation for an indefinite period of zero interest rate has been confirmed. Janet Yellen, the vice-president of the Fed, has indeed confirmed, at a conference sponsored by the National Association of Business Economists, that an aggressive monetary policy is still necessary, given the state of the economy. Meanwhile, Warren Buffet said that U.S. stock markets will remain undeniably boosted as the Fed’s policy clearly does not change.

Finally, one should not deny a good series of economic indicators from the U.S. domestic market. Thus, the U.S. New Home Sales skyrocketed by 16% in January, to reach the highest level since four years and a half. Growth rate is the highest since 20 years. The CB Consumer Confidence, published last week, stood at 69.6 for February 2012, far higher than the market consensus which was 61.

This week, brokers will pay attention to U.S. employment figures for February, economists expect 160,000 new jobs in the United States. A good surprise could be an opportunity to establish new weekly closing records this Friday.

The dynamics of the Dow Jones remains on a strong bullish trend in daily data above 14,000 points, threshold coinciding with the 20-day moving average. Nothing seems able to stop the U.S. index in his race towards new historical highs. The Dow Jones is up by more than 7% since the beginning of the year and it would be surprising if the rise is stopped at 1% of its historical record which is at 14,198 points. A breakout of that level would put investors into the unknown and each new increase would mean new record. In contrast, only a big decrease under the 13,800 points would suggest a consolidation towards the 13,500 then 13,300 points by extension.

This strategy could be implemented through the E-mini DJ FUTURE (code: YMXXXX) on the CME E-mini futures markets.