I'm coming in from a completely flat position this morning, other than a 1% short gold futures from 1349.50. Eased into a short DJ futures position early, then bought 2% DZZ when gold futures hit 1380. Bought 4% SDS when SPX hit 1213. I am still very under-allocated.
QE2 was the Fed's swan song. Ron Paul is heading the Monetary Policy sub-committee of the Financial Services Committee which, of course, he will also join. Barney Frank will take a back pew at the Church of the Fed Ass-Kicking. Expect subpoenas for evidence and injunctions early on.
Do I hear an Amen, brothers and sisters?
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ReplyDeleteBen's Last Erection
http://99ercharts.blogspot.com/2010/11/spx_5347.html
Amen. However, I don't believe that any prayers are going to be answered until the Fed fails conclusively.
ReplyDeleteThat's the good news.
ReplyDeleteThe bad news is that the ED count that we've been watching is now busted. Throwover too high.
Still an outside chance the alternate ED I mentioned in my last comment could be in play, but jeez I hope not. If it is, it will be several more days at least of whipsaws before the 5th wave of THAT ED tops out.
Until Congress reigns the Fed in, I believe we're fighting a losing battle to go against them.
Yesterday a read a comment on another blog that calculated the effect of QE II if all the new money were put into the SPY etf. Comes out to buying 2000 shares of that etf EVERY SECOND during regular trading hours for the next 7 months. Can the market go down with that kind of wind at its back?