Saturday, January 15, 2011

Conditional buy on stocks continues

No change here. With each passing day in the markets, we will continue to see the Fed do the same thing: injecting money, funny money that is, into the financial system via Quantitative Easing. It's such a simple formula that even a young chimp could do well in the stock market. This manipulation of the markets has worked like a charm. We finished the week with the Dow up for seventh week in a row.  the key basic rule remains: don't fight the Fed. Many a short selling "pro", or hotshot has been severely tested and burned by the bald headed and bearded man in Washington. I love watching the shorts ridicule the :"QE-tards" as the shorts like to call the longs, but thus far the bulls have been winning hands down - not even close. LOL.

QE will end badly someday. Remember, I have made no secret of my disdain for QE but for as long as it goes on it's happy days down on Broad and Wall. Yes, I recognize that all good things eventually come to an end. Eventually, Wall Street's free lunch money will come to an end. But when this will happen is a great unknown. The present round of QE is projected to last through the summer. Once we get to that point I fully expect the Fed to proceed with another round of QE. As Jim Sinclair of the famed JS Mineset website would say: QE to infinity. This is a game that will last for a very long time. Trillions more of QE is on the way over the next few years, or at least until the November 2012 election,

I am anticipating that Wall Street's upward slog will continue with the requisite bumps along the way until the QE picture dramatically changes. IMHO it will take a large dose of sudden doom to derail the QE effect on stocks. Again people this is not rocket science, it is the buying and selling of stocks where certain overriding factors must be recognized.

No comments: