Crafty Ben Bernanke…………………with update at 9:40 AM CST

 Ben must have stayed awake many nights to try and figure out how to setup yesterdays releases and interviews.  My clue is an old saying “a guy with a gun who says don’t mess with me, I have more bullets” is out of bullets.  The financial press, especially CNBC wants to believe that some kind of QE3 is coming. I don’t think so.   

The Fed is  obviously scared.  They really didn’t change anything other than say interest rates would stay cheap until 2014 unless things improved.   Ben went out of his way to use the stimulus talk more than in recent times and his “helicopter Ben” legacy precedes him..  I would guess that Europe and the US Elections are the two top things that he is worried about, one he can allude to, the other he cannot talk about.  He knows that if the economy goes south this year Obama is toast, and if Gingrich beats Romney, Ben knows he is toast and will go out in disgrace.  I wouldn’t sleep either.

One good thing did happen yesterday, Geithner said he wouldn’t be around if Obama gets a second term.

The short-term traders have the ball for a few days here.  Watch the dollar closely, it is backing off into the 79.00 support area that we mentioned a few days ago.  No change in our positions are being made. 


We have gone to a 50 percent short positions in stocks this morning.  With our 80 percent short position in gold we are now at a leverage ratio of 1.3 short of trade positions( short gold and stock).  Forgot to mention my hedge of my iphone put on yesterday.  Got short apple at 454.17 on yesterdays opening.

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