A Contrarians View
1. Ben is about to lose a play:
Yesterdays blurb by the WSJ “The Fed considers a new “sterilized” bond purchase program, still aimed at boosting the economy, but also designed to calm inflation fears. With this plan, the Fed would still conjure up dollars to buy long-term bonds, but would then engage in a “reverse repo,” borrowing back the money for short periods. And all it took was one serious down day in stocks. The bond vigilantes will finally say enough is enough.
2. Mitt Romney will not be the Republican’s candidate. He is just another elite like Obama. My money is still on the angry mob, and Gingrich is still their most logical choice.
3. The markets and the economy will come under interest rate pressure as this year continues. Short term rates like the 2 year note are already pointing the way.
4. The broad market warning this past Tuesday (gold and Stocks) is now being set up with a hook rally going into the employment report. This hook enables the parameters that our flash crash program needs for a sell signal. That doesn’t mean it will happen, it just means the conditions now exist.
5. Greece is just an excuse for rallies and declines to talk about on CNBC.