The Day Ben Should Have Stayed in Bed

Yesterdays Fed action means that we are closer to the end of this stock market rally than we were prior to the Fed meeting. Apparently the Fed didn’t get the message of the election that change was in the air.  The last thing we need is more bubbles, especially in 30 year T-Bonds. 

So we are keeping an eye out for a short-term exit in the stock market, at the moment the 835 area on the S&P will be something to watch.  We still believe that the market is headed slowly higher in the long-term, but this forcing of the interest rate markets is a short-term de-stabilizing event and for us it means that we are going back to a more active investment strategy than we have been following since October 08.  The Fed could have kept things nice and slow by doing nothing, just releasing a statement that no changes are needed, things are fine.

Gold and the Dollar are doing their reaction thing, the initial pop yesterday afternoon and then the wrap-up move this morning for all those who were not following the news yesterday afternoon. We have made no changes in our positions.  If Gold can push through $ 1000 we will chase it, at the moment we are short at the $ 928 area.

The EMA ETF Fund NAV was 945 at the Close yesterday with a 1.55 leverage ratio.  Both of our Marketocracy Portfolios,  Aggressive with a leverage ratio of 1.90 and the Conservative with leverage at 1.0 are now up for the year.

8:02 AM CDT

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