Bernanke’s Opportunity……………..with update at 11:20 AM CST

Will Bernanke cave in to Congress again, or will he call a spade a spade.  All of you know well that I believe Bernanke has made the problem much worse with QE2, QE3, and whatever you call the version we are at now.  After the initial push, QE1,  this became a problem for the White House and Congress to fix.  They haven’t and you will have to bet that Ben will cave in again.  But he is all talk at this point.  Congress and Austerity now are the game.

No change in our positions, 1497 in the S&P should be resistance on the Bernanke bounce this morning and gold is pushing against the 1595 resistance level. 

And Bernanke said:

If you guys sequester, the economy will loose 750,000 jobs and I will keep buying securities for the Fed because we will not get close to our 6.5 % unemployment rate goal.  Gold loved that little tidbit, and pushed through short-term resistance and is heading to long term resistance at 1640.  Never mind that buying securities does not seem to help and makes the Fed’s eventual  get-out policy more difficult.