Fat Cat Rebellion Almost Over

As far as I am concerned February 17, 2009 was the start of the negative surge.  To best illustrate this I am re-publishing our posted coments from that day, see below. 

The markets move to try and build the 840 S&P platform base is moving ahead and should be completed soon.  Once that occurs trading will become much more difficutlt.  Knowing who to fade will take a lot of work then.  And the longterm trading range of 840 to 1040 will be a very slow upward tilt.  The Obama programs may or may not work, but no one will know for sure for a long time, probably at least a year or 18 months.  In the meantime the programs are going to start being implemented and money will flow to projects and things are going to start happening.  

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9th Year 0f Economic Decline

February 17th, 2009 · No Comments

The pessimists are out in force.  If you watch Fox News or Kudlows’ Show you would think this is the start of some calamity.  In fact the economic decline started in 2000, we are 9 years into it.  The two solutions that were tried, 1) Iraq war spending and 2) the real estate boom didn’t work and now we are on day one of the first try at a real solution.

Most of the emails that I have received in the past two weeks have pertained to whether we would provide some sort of shorting program for stocks.  We could, we have a lot of computer programs that could do such and I have to admit that it is tempting to try and make some quick money here by piling on the short side with the doomsayers.   In the long run I doubt it is worth it in terms of muddying  the water with the macro approach that we strive to maintain here.  

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The EMA ETF Fund NAV was 980 at yesterdays clsoe.

8:12 AM CDT