Wall Street continued to defy most forms of gravity on Wednesday as all three major indexes once again gained in the midst of rather unnerving economic data from the States. While investors have always had to be forward looking and not worry too much about the past, it is the current interpretation of peering through the ‘looking glass’ that has many bewildered about the true meaning of this adventure into the land of record highs.

The Empire State Manufacturing Index came in negative yesterday along with the Industrial Production figures. Today the U.S. will publish Building Permits statistics and the weekly Unemployment Claims report. The highlight of data from the States today is likely to be the Philly Fed Manufacturing Index which is expected to have a positive reading of 2.5. Given that the Empire State’s projected estimate yesterday was 3.6 and came in minus -1.4 should be enough to make some investors worry, but then again Wall Street appears to be quite calm as long as it continues to overdose on the prescription meds that the Federal Reserve is selling over the counter.

Most noteworthy is that the USD has been strong against nearly every other major currency. The EUR, GBP, and AUD have all tumbled in the past forty-eight hours and are testing short-term lows. Not to mention the JPY which is continuing its devaluation foray unencumbered via the Japanese government’s own unique vision.

Gold is trading near 1391.00 USD as of this writing. Crude Oil has slipped and has fallen back into step with many of the physical resources which are under pressure. WTI even after its decline in price the past day remains rather over valued in Digital Markets Advisor’s opinion.

The sputtering noise you may hear from outside your home could be the European economic condition. The broad E.U. Flash GDP came in minus -0.2% yesterday, the Italian’s produced a negative -0.5%, the French minus -0.2%, with the German’s wobbling up with a mere gain of 0.1%. The most astonishing bit of bad news was the negative revision of last month’s German GDP report, which suddenly came in with a very red outcome of minus -0.7%. Recession is no longer a rumor among only the cynics who have openly questioned the economic policy from the continent. The ECB’s ‘vision of better days’ to come will likely need to have its script changed for its major actors.  And President Mario Draghi will need all of his powers to keep the audience calm as they try to decipher the scenery changes in the middle of the production.

While equities in the United States continue to display an almost mindless climb along with many of their European and Asian counterparts, investors should listen attentively in case the ticking of the daily clock begins to sound more ominously like an explosive device. Short-term traders among the major indexes had better be suspicious about the slightest of changes. For the time being everyone seems to be drinking up and enjoying a mad celebration. The Sovereign Bond market from Europe continues to be strong for the respective issuing nations too. However tell-tale signs exist that volatility could seep into some of the more serene asset classes, this because the forex and commodities markets have been more like a witches brew as of late and might be evidence that not all is well in the investment kingdom.