Archive - Nov 2010 - Blog entry

As the whole financial world now knows, Ben Bernanke wants to actively foster inflation by trashing the US Dollar. Setting aside the fact that this is absolute insanity (inflation has already hit the US), Bernanke’s made it clear that he wants to trash cash to keep stocks up.

The only problem for our esteemed Fed Chairman is that Europe’s banking system appears to be even MORE adept at currency destruction than Bernanke’s money printing trigger finger.

Risk is rising higher and higher, owing to mid term elections and Quantitative Easing (QE) resulting in breakouts across
the board. Even the late coming financials have broken the pattern and now pulling back to retrace some gains. The
overall outlook is bullish – however, in the short-term, the market is aggressively overbought and a setback albeit milder
one is on cards.

Do all branches of government serve the oligarchy?

This comes along...

This presentation outlines some of my observations about the G20 (a colossal waste of time), the U.S. dollar policy (to weaken, not to crash) and the related investing strategy.

The fallout from Ambac's bankruptcy is not necessarily what many may think. The robo-signing plaintiffs and associated lawsuits will now get to see what happens when the spurned money of the big boys joins the fray!

We don't care (from an investor standpoint) IF the game is rigged, as long as we understand HOW it's rigged so we can play along at home.

Karl Denninger of Market Ticker thinks there is a secondary banking crisis next year that will trigger a cascading collapse in the stock market, and another government bailout. TARP 3 anyone? Going back to an S&P 500 earnings of $105-$110 a share in the face of the soaring cost input factors is totally laughable. “Foreclosure Gate” will be much worse than expected. The 900 pound gorilla in the room is the second line problem, which is mostly concentrated in the top banks. We could reach 3,000 in the Dow and 300 in the S&P 500. An exclusive interview with Karl on Hedge Fund Radio.

I pity the fool!

As if astute observers, the objective (and/or BoomBustBloggers) couldn't see this coming a mile away. The next prediction cum manifest destiny (Euro-toxic asset edition), many other sovereign nations - in and out of the EU will be pulled down by their extend and pretend treatment of bad bank assets.

The Fraudmuda Triangle, previously known as the Bermuda Triangle, was a region in the western part of the North Atlantic Ocean where a number of 2Big2Prosecute Wall Street aircraft and surface vessels allegedly disappeared mysteriously. Most, recently it has been quantitatively proven the Fraudmuda Triangle has shifted west over the continental United States of Fraudmerica.

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.

The Fed initially claimed QE 1 was an emergency measure that would save jobs and the US economy. Amazingly this one time emergency measure (which failed to do anything for the US economy, I might add) has now become a way of life for the Fed.

Indeed, QE 1 never really ended as the Fed continued juicing stocks every options expiration week even after QE 1 was supposedly completed. And yet, despite this, the Fed has now announced QE lite and QE 2.

There are two dynamics going on in this market. Call it force versus force. It is the overbought, over bullish and over valued market that should rollover versus the buyer of last resort, the Federal Reserve. And there can only be one winner.

If the market hasn't topped out already, it should do so within a couple of percent of the recent highs. Rallies should be sold and stops tightened up. The market is prone to sudden sell offs. There will be better risk adjusted opportunities to buy in the future.