Funny Money is leaving the Game
The Fed is getting results. If one looks at some of the ETF sectors that were most benefited by QE2, like DBC, DBA, XLE, XLB and compare them to what is happening with the area most hurt by QE2, the…Continue Reading →
Fed Comments
A Much Needed Cleanout
It would appear that the S&P 500 is headed for the 1070 level by the middle of October. This all started in 2009 when Obama settled for a stimulus light, trying to make peace with the Republicans and blue dog…Continue Reading →
Speculators on the Run………When to Buy Stocks
I am impressed. The Fed’s Twist program is having a quicker effect than I thought possible. To a certain extent the past years QE2 program’s lean towards speculation in stocks and precious metals is being unravelled. That is good. Now a…Continue Reading →
The Twister…………Initial Reaction at 2:00 PM CDT
Focus today is on the FOMC’x Twist program of extending maturities of their holdings. To me this is primarily an attempt at doing something, however inconsequential, to make it appear that they are not powerless at this juncture. There is…Continue Reading →
Little Bits of Good News
The Fed numbers point to a small reduction in the monetary base, a welcome bit of stability that we didn’t see during QE I and QE II. The trade deficit declined as imports declined and exports increased. Also Bernanke in…Continue Reading →
Moving Forward After Employment Numbers
With the employment number now history we can now look at a period of settling in for the market. Over the next 60 days look for the S&P 500 to trade between 1180 and 1270 and pivot around the recent…Continue Reading →
Bernanke Unraveled………..technical Gold Update at 1:30 PM CDT
It is fun to read what the analysts believe the Fed said in its statement yesterday. The pundits seem to have the answer before they read the statement. Much of this is due to the “Helicopter Ben” legacy and all…Continue Reading →
Bernanke ???…..update after testimony at 11:47 AM CDT
Obviously with his intial testimony this morning it appears that I was wrong in thinking that Bernanke believed in something beyond inflation generation. Update at 11:47 AM So what we are ending up with is a short-term blowoff in gold. …Continue Reading →
Hope of QE 3
That is where we are now that the Republicans finished off the Reagan era of voodo economics. It will be interesting to watch Bernanke’s testimony to Congress today. I will be content if the pattern, which I agree to, continues…Continue Reading →
Waiting for the Other Shoe
As the stock market summer relief rally stalls and Washington builds to a crisis it may be a good time to read a couple of good articles that are pertinent to what we are seeing unfold. http://www.truth-out.org/ideological-crisis-western-capitalism/1310127895 http://www.nytimes.com/2011/07/10/magazine/sheila-bairs-exit-interview.html