The Fed just announced a massive expansion of their fucking balance sheet. They are in danger of causing of run on the dollar, as their stupid printing presses run until the ink dries out.
As a result, the dollar is getting murdered. Watch it via UUP. And, treasuries are sprinting higher, as big money flees for safety. The initial market reaction is bullish. However, should treasuries continue to melt up like this, coupled with a crashing dollar, the market will get nailed to a crucifix.
If you are short stock here, beware of a blow off top, as the market presses your pain threshold.
The Fed cannot continue the reckless path of monetizing everything. This is NOT bullish for the markets. Do not be suckered into this rally.
However, if reinflation is the current theme, commodity related stocks may bounce here. The only commodity related stock I am comfortable with here is gold, via GLD or DGP.
If you enjoy the content at iBankCoin, please follow us on Twitter
Again everyone else is slow.
However, should treasuries continue to melt up like this, coupled with a crashing dollar, the market will get nailed to a crucifix.
Wrong, a drop in the UUP should mean a nice rally though still.
As long as the correlation holds – it could mean a run up to 9k in the DOW.
i just bought a “barrel” of DXO on the devalue the dollar, commodities go up play.
adding to sds here…
why do you hate helium so much?
Cuervo
Go stick your fucking spreadsheets where it doesn’t shine. Sometimes you have to think like a human and not a snide Canadian robot.
http://www.kitco.com/charts/livegold.html
look at that pop in gold
Look at the TBT chart – looks like a plane shot down.
Fly Caution acknowledged… I added on gld at the low today and questioned myself about it. In the long run it has to retest 1k if these guys keep doing their work of the devil under the guise of incompetence.
get out the horwitzer, cramer’s on
WTF?
Fly:
Shouldn’t you have a little skin in the game in order to get a better feel.
You sound like you wish the market would pullback so you could buy in
Many people feeling like this could cause a melt up as wee continue to gain ground!
Heavy buyer of oil here if you don’t have any. Its going to re-inflate no matter what Fly says. This fucking treasury deal is equivalent to riding a blind donkey in a mind field. Prepare to be de-balled.
The “doomsayer bubble of 2009” may have just popped all over Fly.
UBSI primed for short squeeze!
Sorry to offend Señor Tropicana.
I will add that, as a general rule, Jake also points out the inverse relationship between the US Peso and the market.
Of course, a sudden parabolic growth in commodities will help lift Canada out of that pesky recession we’ve gotten sucked into.
expecting a mini run on the dollar, that will, without question in my mind, bring the market down either today or soon. I am adding to sds on the way up.
Welcome to the biggest Shell game in the history of man kind. Moving money from one pocket to the other. Fed prints money, Treasury sells debt back to fed to print more money.
WTF?????????????
Buy gold
No hard feelings Curevo.
I do like regular Canadian. I just take exception to the robot variety.
As for the spreadsheets – using UUP to mark buy and sell signals for DOG is up 28.89% this year.
Take the trade in front of you.
I might get nailed here, but I would find it hard to believe this market will be up significantly for the overnight forex session…
fertilizer will be a good long term buy here. it will be a boom year for farmers, plus with the rising cost of food, more and more people are starting gardens in their back yards.
I was at my local Farmers Feed and Seed yesterday and the place was packed with people buying seed and fertilizer.
I just bought MOS at 41.38 today for a long term play.
I also visited 3 Walmarts, and 4 gun stores. Only one of the 4 gun stores had 9mm in stock and they were cheap Korean made PMC brand, not other brands. All 3 walmarts were bare of 9mm, 38special and .375. very few had .223 and the few places I visited that had any bullets were priced out the wazoo. I mean crazy prices.
and today SWHC is trading at 5.70 I see it is on its way to 7.00.
OLN (Olin bullet and bullet machinery making company) is up 10% right now.
so it’s looking like fertilizer and guns and bullets are on top here.
fuck off.
Godlike buys in TBT (thanks for the TLT heads up).
Good call Artist, I overlooked OLN. 2 Wk chart is bottom left to top right.
OLN boosts guidance, up 12% now…..
small possibility here of a complete collapse in final minutes…
Uh, Señor…
Does this mean that only PPT subscribers can get quotes through this here fine establishment?
Not Found
The requested URL /quote.php was not found on this server.
Apache/2.2.3 (CentOS) Server at ibankcoin.com Port 80
I’m sure it’s not the OS fault…
Ed Liddy $1 a year…now that is some funny shit.
No Consumer..NO Business….Government is the only thing working. Today tells me they still have no plan for toxic shit other than to pawn them off on the taxpayers in an “orderly fashion”. The $500,000 house in Vegas selling for $250,000 is not coming back to $500 in a lifetime. So Sorry.
I love how everyone always agrees on CNBC. Everyone is bullish. I remain a bear until capitulation
What the fuck is going on, I went to bed for a couple of hours and wake up to this! I agree with you on most things but the rout in the dollar may be only short lived, Fly.
You also need to watch if the other major central banks decide to go that way and monetize everything too. The Fed will forced them to even if they aren’t in agreement at this stage. The Japanese will die with a stronger yen and the Euros will have be in a casket beside them. In other words they’ll have no choice other than to monetize too.
As for the getting out of the Dollar, where are the bozos going to go, the yen, the Euro. In any even the US deficit has basically been cut in 1/2 so external financing isn’t that big a deal.
The fed has just forced everyone’s hand here and we don’t know where it will end up.
I’m not editing, as I’m still asleep.
The Obama administration is considering using a new Federal Reserve program designed to spur consumer lending to help remove distressed assets from banks’ balance sheets, according to people familiar with the matter.
Officials may meld the Treasury’s plan to set up private investment funds to buy frozen assets with a Fed program originally aimed at spurring consumer loans, the people said. The Federal Deposit Insurance Corp. may also get a wider role, the people said.
Treasury Secretary Timothy Geithner may use an array of approaches to maximize the likelihood of cleansing banks’ balance sheets so they can start lending again. The next announcement, which may come as soon as this week, will be critical after Geithner’s first unveiling of the strategy caused a sell-off in financial stocks.
“The markets are just getting increasingly nervous, the longer they wait to announce the plan,” said Stephen Myrow, a former Treasury official in the Bush administration who helped create the Fed’s program.
I see this massively bullish for banks if they’re taking out the shit at undamaging prices.
Done for the week.
Thanks GDX.
Moe:
Watch the Aussie, if the Aussie takes off and holds it’s own against the other currencies it will be a marker for world liquidity. ti will mean the rest of the players are going to monetize too and world liquidity will be back.
I’ve got 35,000 BAC at 4.80 ish. I can see $10 on this shit in the next few days or I get out at 4.80 which is my stop.
Nice trade TC!
mrkcbill:
Today tells me they still have no plan for toxic shit other than to pawn them off on the taxpayers in an “orderly fashion”.
Well of course, which is what we did with the S&L’s and it fucking worked.
———–
Prof:
Don’t be taken in by the Asian and Eurotrash markets going down today as they will as a result of their currencies strengthening. In fact read that as actually bullish for the US market because it will mean the Japs and the Euros will be left no choice but to monetize jst as hard.
They only people really, really fucked in all this are the Chinese holding a bag full of US dollars that will 1/2 their value in 10 years time. Kinda feel sorry for the average Chinese working person because the fixed exchange rate fucked them.
Cajun – Do you suck Fly’s salami in real life, or just make-believe on his blog ?
TC – I have GDX and GDX September 26’s.
It was a golden grahams day.
___________
Artist,
Just an FYI as an avid gun enthusiant I will tell you that Wal-Mart has been out of pistol ammo for months, not only that but you cannot find powder, bullets, or primers anywhere. All local stores get deliveries here on Mondays and Fridays, since this summer those deliveries are sold out within 1 hour of them arriving. As opposed to buying SWHC or RGR I have purchased several AR-15 rifles in July, and have seen 100% gains when selling those in the last month.