Bubble Menders…………..with Update at 12:24 PM CDT
Same crowd, less money, that is what can be said about the crowd that has taken on buying the S&P in the 900 + area. This is the crowd that got blown out of the water in stocks in 2008. They along with the inflation hawks who are buying gold in the 925 area are creating a bit of excitement at the moment.
There is a lot of talk that the liquidity that was added to the banks is now being used to make a play in the stock market rather than being used to make infrastructure loans and that the S&P will run to the 1050 area now. It may, but we are going to watch and let this unfold before we move to an aggressive short position in both stocks and commodities.
The EMA ETF Fund Nav was 1151 at yesterday’s close.
7:00 AM CDT
Update: Bought ETF DUG (double short oil, face value equal to 5 percent of fund). This makes us 5 percent short crude oil in the fund and our aggressive portfolio. Oil is at 68.80 at this time.