Take a look at that end of the day action. That is the kind of movement you get for one reason, and one reason only. Shorts are respecting the Fed, by backing down.
I am not one to go intensely long equities at this moment. I have a nice sized buffer because the dollar itself is coming into its glory. This by itself implies that U.S. markets and most commodities are ripe for a selloff; not a tepid selloff either. In terms of commodities, I’m thinking 20-30% is not out of the question. U.S. equities will be more a rush to realistic earnings, as better people like the Fly have discussed before now.
However, you would have to be suffering from some kind of rare brain amoeba, moments from death, to get the reckless stupidity needed to short this market.
Maybe I’m still short oil by a good amount, but that’s because oil still has a good shot to trade down. And I’ve got the adjacent assets needed to cover my back if I’m wrong.
To actually go net short this market would be akin to laying your neck across a Chinese high-speed light rail. Or it would be like actually riding a Chinese high-speed light rail train.
Or be within 100 yards of a Chinese high-speed light rail system…
The point is it’s a needless risk just inviting doom and death upon your person. Obviously, something is just waiting to go wrong. Maybe you get decapitated; maybe the train slams into a barrier comprised of an orphanage and a retirement community; maybe two trains just collide going in opposite directions and the resulting carnage of fused material at 500mph equivalent force send a shard of glass through your trachea.
But with such a host of options, why wait around and find out?
Bernanke is exactly like a Chinese light rail system (zero safety systems, no restrictions) just with less regulation. It’s obvious he is meddling overseas right now; Treasury officials and Fed officials have been running back and forth across the Atlantic for months now.
They are working on something; they didn’t come this far to watch Europe ruin it all.
Does that mean we trade up from here? No, not necessarily. Personally, I still think we trade down some more, which is why I’m still short oil. But that doesn’t mean you should make the jump to putting your health on the line.
Don’t give Bernanke the opportunity to hurt you. Because he will.
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Re; le dolar…
Google: “Island Top Formation.”
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I do not believe in fairies.
Or clapping, for that matter…
Short as the day is long. Bernanke will disapoint. This is all needed to get the wild return to the Bull Market vis a vie some “epic” groundwork laid by congress with the prez approval, once more proving that the American gov’t is not only relevent, but potent. The lense needs to be turned away from the fed before the real shennaigans begin… You have been warned…
“…vis a vie some “epic” groundwork laid by congress with the prez approval, once more proving that the American gov’t is not only relevent, but potent. The lense needs to be turned away from the fed before the real shennaigans begin…”
How much control of the process do you think these people actually have?