If you haven’t been keeping up with the healthcare debate, I understand. However, very recently something interesting happened. The Obama Administration, under the command of Kathleen Sebelius, jettisoned a component of their own healthcare law, as they realized it was unworkable.
The CLASS act of the bill was an important component, as it is what helped to make the bill deficit neutral after the first ten years. Without out it, the healthcare plan is very much a burden to the U.S. deficit, and it’s unlikely the people who passed the bill would have done so without this aspect.
This entire package is coming apart at the seams.
Before the open, crude oil was absolutely, resolutely crushed. Please remember where we are, in the grand scheme of things. Sure, maybe the economy is not about to fall off a cliff. However, to say that justifies a move back to DOW 13,000 with crude oil back above $100 /bbl?
Come now, that’s pure naiveté; look at the number of strikes hitting Europe, then tell me the economy is not weaker than it was this time last year. Look at China further manipulating their yen (yes currency traders, China is still not letting it get stronger, what a shock), then tell me the dollar should be this weak.
I am retaining all of my hedges, despite how painful it is to watch the unrealized losses stacking up, because you are all too jovial about things. This rally has been impressive.
But this too shall come to pass.
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Well put..thanks!
I’m astonished at the change in market sentiment. From completely utterly bearish, with the average person not knowing what to do with their investments. To the return of QE style bullish complacency, where I’ve got random people commenting on how strong the market is doing. Really? Feels a lot like August’s right shoulder top, no?
Holding onto my Silver short via puts, expecting the same – euro weakness translating into Dollar strength. The thesis needs a dollar bounce, but I’m prepared to add/rotate.
At this point it feels like coyote trapping. I’ve got my cages out on a long timeline and I expect to catch some profit – I choose to disregard all this bullish noise.