QE3 Lovers are in Focus Here
The financial press has been giving little threads of hope to the funny money, QE3 crowd since the beginning of the year. While the Fed may do something to try and help the mortgage/foreclosure situation, this will be a targeted initiative that will not roll out into the hands of the speculators.
As such, the rally from 1240 on the S&P 500 since 12/20/11 has no supportive footprint. For us. based on an expectation of a little exuberant January pop, we rode that little rally above support for around another 4 or 5 percent to the 1291 to 1300 area and got out of our long positions and are now as we mentioned last week, lightly short.
And how about that Gingrich guy. He is kind of scary. You cannot believe a word he says or trust him, but he is the smartest and most progressive Republican in the race. The Tea Partiers are being taken to the cleaners with his first two wives.