We saw it again yesterday, a big wave of buying based on a big mouth spewing a lot of combustible fuel, if we could light it off, at least we could see a little fire for the economy. To me it is like seeing a whole economy being sucked down an elevator shaft, never to be seen again. Lets take a look at the GDP now forecast that the Atlanta FED calculates, this chart is the forecast for the first quarter in the US which ends this week. This chart points to a 1 % GDP number, while the “mouth” is talking about 4 %. When will the market open it’s eyes?
At some point this is going to get real nasty. So far the Long Gold / Long Bond trade that we put on in December is looking better and better.
And the EXTH Tracking fund is still positive for the past 10 weeks, in spite of a little hiccup yesterday.
One more thing from MarketWatch this morning.