Exchequer Norman Lamont: “The Fed Will Be Proven Wrong”

Hello there fine gents,

Early this morning, Lord Norman Lamont had a word, or two, regarding the obliqueness of the Janet Yellen Federal Reserve. Our good Sir offered his two cents, as well as the final say, on the eventual outcome of the ridiculous Yellen ‘dot plot.’

There is nothing else to be discussed on this matter. It is now closed. EXCHEQUER NORMAN LAMONT has said what needed to be said on the matter, so consider it a moot topic henceforth.

Good day.

In theory, we should run higher for the next two weeks. But I didn’t like today’s action, with regards to the breadth. Just 73% of stocks were up and the bulls lost some of their mojo towards the close, ceding almost 100 Dow points to late day margin call sellers.

Either way, I’m in it to win it for at least another 10 trading days. I will start to unwind my SPY position next week, so I have a vested interest in seeing the market rally.

To accomplish that end, without question, we need to see crude run like a crazy machete wielding mad man in the middle of the desert. If not, then we’ll give back today’s marginal gains and resume the death march towards elysium.

The perversion of honor and dignity is an ongoing process on Wall Street, where talking heads constantly switch sides in order to create the illusion of being right. McClellan has been in the bear camp for some time now; but everyone changes and it is time for everyone to buy stocks again.

BEHOLD.

All of the bulls are out in force today, rolling over the bears with spiked wheels. Tony Dwyer is out talking mad shit today, crazy stuff like the market will rise by 14% in 2016, despite the fact that the world is ending. Hello?

Botton line: this is how the rally extends. The Wall Street apparatus is working with the media to promote stocks and get this market going again. Gains are extending and breadth is up to 78%, a great sign for a continuation of the rally.

Remember when I suggested that we “crash it until the Fed surrendered?” Well, we kind of did that, no?

Now the most retarded of the Fed hawks, Fed’s Bullard, is rethinking his stupidity, which is the reason why we’re rallying–other than the oversold nature of the bounce.

What happens if the Fed backs off their “dot plot” and adopts a supporting role for equity markets? We.fucking.surge.

The odds for a March rate hike are now down to 30%, meaning the market is calling the Fed’s bluff. This is an encouraging development and should be monitored very closely.

A much deserved and anticipated rally. I was expected this. After all, why else would I be long 200% SPY now.

But this isn’t the rally to end the bear. With the market up by 100 NASDAQS, one would expect market breadth to be upwards of 85%. Instead, and despite the feverish nature of the tape, we are at just 72%. Hopefully this will continue into tomorrow and I’ll be rewarded by owning such a bold and stentorian SPY position. The algorithms inside Exodus have been flagging Oversold for a week. But yesterday was the first time it flagged oversold for our historical algorithm. That is probably a confusing thing to understand. Just know, it’s a rare event and it means the technicals of the market are as bad as they were during 2009 and 2011, when those low points were reached.

Nevertheless, today’s breadth isn’t good enough.

Enjoy the rally and the respite. But we need better breadth if this run is going to continue.

He discussed oil and the lunacy of upping earnings estimates for airlines and then selling off the stock. Also, he said if oil traded down to $29, the market would sell off another 3%. He was in true misanthropic fashion.

My favorite part was towards the end. Admittedly, I am a sucker for Federal Reserve bashing. As you know, when Cramer hones in on the Fed and starts to bash them, he has no equal.

Let the games begin.

Until they’re not anymore. We’re all so jaded, it’s ridiculous. Futures are higher and the market looks like it will jump off this morning, something that its done, repeatedly, over the past week–only to fail. While morning rallies are often subjected to swift sell offs in bad tapes, there will come a day when the market just doesn’t look back–leaving you and your little friends in the dust.

This is why I’ve been buying SPY each and every morning, over the past week. I’m done buying, 200% long SPY into a vast black sea of murky uncertainty.

For markets to rally we need oil, copper and Apple to be strong. In addition, we need some institutional buying to show up in the afternoon to offset retail margin selling, which should continue for the next few days.

I am very optimistic for a 1-2 week rally, which will feed off the negative backdrop, naysayers, and outright malcontents, who will miss the first leg of the rally and enter late. I will be selling into it and then sideline the proceeds until the next oversold signal in Exodus presents itself.

European car makers are a disgraceful lot. Over in Paris, shares of Renault are getting hammered after ‘fraud police’ raided their offices.

Apparently the fraud investigators wanted to check their equipment at their factories. Perhaps they too are cheating on their emission tests, like Volkswagon? The company actually confirmed my suspicions, saying the raids were “linked to the consequences of the Volkswagen rigged-engines affair”. One thing is for certain, I never liked Carlos Ghosn. I remember when our auto-makers were being bailed out in 2008 and that little fucker was being praised as some sort of white knight in the auto industry.

Meanwhile, Nissan and Renault make hugely piece of shit cars and now the ‘fraud police’ are going to toss him into the lions den.

Talk about pulling a relic out from the woodworks. Bloomberg found her in the darkest corner of the world, where she painted a bullish outlook for stocks, suggesting investors are acting emotional and without brains.

She thinks crude trades $30-40’s, referring to her colleagues work. And, she posits the S&P 500 will trade up to 2,100–based on her mathematical models, which luckily for all interested parties, are not saddled with the sad luggage of human emotion. She isn’t into all of this drama, like the lot of you. Goldman’s Cohen is robot-like in her fair value assessments and cannot relate to the broken chopsticks manner by which the Shanghai composite conducts itself.

Back in the 90’s to early 2000’s, Cohen was the man (extra Bruce Jenner). Whenever she made a market call, the market heeded it and the media sopped it up like sponges and then squeezed it all over the retail investor, who would then go out and buy stocks. She was always bullish on stocks, to the point of retardation when the dot com bubble killed people. Then Goldman reassigned her and she’s been moving about the globe, nomadically, ever since.