It’s UNANIMOUS…

After a six week, 14% rally in the SPX, we now have a near unanimous consensus of opinion throughout the investment world.

1. The FED has our back and nothing matters. Can you say QEII? We are going higher so get on board–preferably with Apple, Google or Amazon.
2. After a 37% fall in the ten year bond yield since April, yields have nowhere to go but lower.
3. After a 10 week, 15% rally in gold and more in many commodities, they have nowhere to go but higher.
4. After a 12% drop in the dollar (DXY) since June, it is going to zero.

This comes after a long and frustrating summer where most every “player” has exited equities. All that are left are the Hedgies, Algos and long-only crowd. These participants feed off the FED’s liquidity. They don’t give a hoot about anything short of nuclear annihilation or an asteroid hit to Saudi Arabia. There is very little that can stop this group once they have momentum.

So why, then, are you “lightening up”, you might ask. Because many of our stocks have reached our long-standing targets. Because there is significant technical resistance (supply) that won’t easily be taken out just overhead. Because the market is rising and it is easy to sell. And because there is unanimity of opinion on the market.

My exit strategy does not mean that doom for the market is right around the corner. Nor does it mean I will be loading the boat on the short side today. It simply means that I am guaranteeing a substantial profit for our subscribers.

Sure, it seems easy to jump on as things are moving and you may be able to satisfy your immediate gratification fix. But the higher the market plods, the commensurately higher the risk level investors are willing to accept is. My job as a market timer, stock selector and advisor is to minimize risk and assure profit. I believe I have carried out that mandate

All in all, ringing the bell after bucking the trend is satisfying for any investor.

With the elections up ahead, many feel that the Republicans will win numerous seats as they represent austerity and common sense spending. I’ve got news for you. The Repubs will absolve the banks of any wrongdoing and will not force them to do anything toward resolving the issues in the housing market. The Dems might not help either. But there could be a very high risk trade developing in the major banks. There could be some real legal issues at stake that could put banks into a deeper coma. But if there is a perception that the Repubs help the big banks, then they can be bought now and sold on election day.