IT WAS NOT AN ACCIDENT

It was by design!

When I sold 40% of my holdings, ahead of the Fed meeting, many of you thought I was mad. This morning I pointed towards TLT as a “tell” with space alien magician precision. Shortly thereafter, I purchased a large amount of HDGE and some ALK. Although I still hold a great deal of YELP, as you can see, the price is thoroughly controlled and is not in the least bit aggravated by today’s plunge lower.

I do not expect anyone to follow me blindly into battle. Howsoever, I will tell you, as a combatant in this market since the age of 10, I rarely lose. As a matter of fact, I do not believe I have ever lost a war. There has been battles gone awry and VXXings along the way; but rest assured, Plutonium Petey will triumph victoriously at the end of the campaign.

Goldman came out with a bearish call on the SPY, thanks to the fucked up Philly Fed. I happen to agree with them.

See, it’s not enough that the Fed be on standby, readying to liquify the system with fresh notes. What we need is bold action, a hiking of the inflation target, massive intervention in all asset classes. What we need is nirvana; but we didn’t get that. Because we didn’t get that, I am afraid this market is going, irrevocably, lower.

Remember my bovine friends: my core thesis behind getting long was the specter of QE3 and policy response by the ECB. Until I see that, unfortunately, I must remain sidelined.