Another thing that crossed my mind is that Madman Bernanke won’t go the hyperinflation route because mortgage note holders would be able to pay off their homes faster and the banks would get screwed. So he has to TANK IT. The only question is when?
This country has more oil locked up in shale (at least 1.5 TRILLION barrels) than any other country in the world…and the richest farmland also. There will always be a high intrinsic value, so whatever happens, those who can ride this BS thru will come out the moose’s butt reasonably well-off.
Exactly – no one else will finance the US (ie Zimbabwe II), so I’m sure they’ll be pumping in some way. It’s so hard to tell what the criminal PDs will do? Tank the market again to buy back cheaper? I think that may be why a bunch of puts just got bought on S&P.
Mass media now saying raise rates & continue QE…which I actually mentioned on THIS VERY BLOG months ago (bravo me!).
Besides, we can all just use trailing stops……it’s your money……milk it for what it’s worth.
one possibility red is that we get an elliott wave 5th wave failure. it is common to get a 5th wave failure at the end of long corrective. this would mean no new high, with the high occuring at 3 and ending at a lower price.
fair enough ~ although look at the US fiscal deterioration has happened in just one year. QE happens because NO ONE else is financing the extra 1.7 trillion per year in federal deficit spending. they are fighting to increase the ON THE BOOKS debt limit to above 100% of GDP.
there is no one to buy the additional 1.7 trillion/yr additional treasury issuance. the fed will have to do it in some way and it will be in a cladestine way.
as for the equities, who will be the bid under the market. participants now have the experience of seeing what happens when the liquidity bid from the FEDS are taken away. with this knowledge ~ do you want to be the last man standing. who will you sell to after june??? so it is BECAUSE of the experience of last april, that selling will intensify…..sell out now while there is a bid.
Not sure if ending it will tank the market now…I’m sure they’ll want to keep the party going until the very end. Last time, the market was on cruise control for a full month before tanking.
Dow Jones Chart: http://niftychartsandpatterns.blogspot.com/2011/04/dow-jones-negative-divergence.html
Richie could be right and the market could drop on Fed comments, BUT, they could take it higher first. Just make sure and have your stops in.
http://www.zerohedge.com/article/backing-truck-spy-april-puts
Hey do you know what month and strike they are buying the SPX puts on?
Another thing that crossed my mind is that Madman Bernanke won’t go the hyperinflation route because mortgage note holders would be able to pay off their homes faster and the banks would get screwed. So he has to TANK IT. The only question is when?
This country has more oil locked up in shale (at least 1.5 TRILLION barrels) than any other country in the world…and the richest farmland also. There will always be a high intrinsic value, so whatever happens, those who can ride this BS thru will come out the moose’s butt reasonably well-off.
http://en.wikipedia.org/wiki/Oil_shale_reserves
Exactly – no one else will finance the US (ie Zimbabwe II), so I’m sure they’ll be pumping in some way. It’s so hard to tell what the criminal PDs will do? Tank the market again to buy back cheaper? I think that may be why a bunch of puts just got bought on S&P.
Mass media now saying raise rates & continue QE…which I actually mentioned on THIS VERY BLOG months ago (bravo me!).
Besides, we can all just use trailing stops……it’s your money……milk it for what it’s worth.
one possibility red is that we get an elliott wave 5th wave failure. it is common to get a 5th wave failure at the end of long corrective. this would mean no new high, with the high occuring at 3 and ending at a lower price.
just a thought….
Well, looks like they will run it up into the meeting. I think we might get our new high today?
A,
fair enough ~ although look at the US fiscal deterioration has happened in just one year. QE happens because NO ONE else is financing the extra 1.7 trillion per year in federal deficit spending. they are fighting to increase the ON THE BOOKS debt limit to above 100% of GDP.
there is no one to buy the additional 1.7 trillion/yr additional treasury issuance. the fed will have to do it in some way and it will be in a cladestine way.
as for the equities, who will be the bid under the market. participants now have the experience of seeing what happens when the liquidity bid from the FEDS are taken away. with this knowledge ~ do you want to be the last man standing. who will you sell to after june??? so it is BECAUSE of the experience of last april, that selling will intensify…..sell out now while there is a bid.
Not sure if ending it will tank the market now…I’m sure they’ll want to keep the party going until the very end. Last time, the market was on cruise control for a full month before tanking.