A Little Reflection Perhaps

It should be apparent to all of my readers that QE2 was not in my Macro view of the economy this past summer.  In fact there were times in the early summer when I praised Ben Bernanke and I felt internally that the term “Helicopter Ben” was possibly a misnomer.  I felt he was doing things right.  Then I went out west to see the “Medicine Man” at the end of August, was true to myself and shunned all media and communication and what do I find when I get back to civilization, everybody is talking about the coming QE2. 

 First I thought it was a joke, then my computer trading programs turned long and I decided to get out of short positions, then the market never backed off to my buy orders.  So I decided this is just a blip I will just ride it out.  And in the end this has been the worst period, September to December 2010, for me and my track record since I started buying gold when Bush II went into Iraq eight or so years ago.  The move has been uninterrupted in many indexes and ETF’s, the last buy signal on markets like the S&P was September 8th.  ETF’s like QQQQ, SPY, XLY, SMH have not wavered the whole time,  The market wanted a bull move and the Fed gave them the juice. 

None of my pattern recognition chart calls have worked.  Ironically, even though the Fed has reaffirmed its stance this week the  internals of the computer programs seem to be developing a significant selloff trigger.  Maybe it is just end of the year stuff or maybe it is more.  Maybe the Tea Party will actually bring some outside the box thinking to Washington.  And I am sticking with my rant of early November, the Democrats and the Republicans as we know them are in trouble.  All this talk of Obama joining with the Clinton crowd will be short-lived or if not will hasten the decline of the Democrats.