The news isn’t relevant now because it’s all rumor milling. The Fed is either going to initiate QE 3 or not. The gentlemen at Goldman, in a research note published today, put QE3 at a 75% probability. I tend to agree with them, but nothing is guaranteed.

Ideally, the central banksters should stop reflating and let the market clear. But to trade based upon that thesis is pure fantasy. Moreover, if you are relying upon governments to do nothing to make your shorts work, you are not qualified to invest on behalf of other people or yourself. Don’t you know they’re embedded? There is no turning back, once you’ve invested trillions in an ideology.

I’ve been doing this shit a long time, okay. Back in late 2007, I remember looking at massive losses in my shorts. I expected a banking collapse and positioned to benefit from such an event. Stubbornly, the market kept marching higher in late 2007, much to my bewilderment and chagrin. But I remained as cool as a cucumber, knowing my position was logical and most likely to be a winner. As soon as 2008 came, stocks dove, full retard style, turning my losses into monster wins. During that period, 75% of my trades were short sales, based upon free markets having to clear unprecedented losses.

Do you know why I am not short now and why it’s different today?

Answer: markets are not free.