Monday, January 24, 2011

Conditional Buy on Stocks Part 64

I realize that I sound like a broken record, or as some people would say in derogatory fashion: a QE-tard. Let's face it folks, where the stock market is concerned the game is rigged by billions and billions of dollars that are regularly deployed by the Wall Street evildoers thanks to POMO. Yes, one day it will end badly and perhaps with inadequate notice but for now the fed is your friend as we approach Dow 12,000. Woo hoo.

Believe me, I am not wearing my daughter's cheerleading outfit. I really despise why and how the market is being manipulated higher. In many ways the ongoing ascent of stocks defies all imagination and sensibility. More and more folks have been coming out of the woodwork in recent days to proclaim that doom in the market will soon be upon us. I take this almost as a contrary indicator as long as there is QE. Ben Bernanke et al are having a wonderful time thumbing their noses at the Bears, or really those who are simply seeking some sort of rational criteria for what makes stocks go up and what makes them go down. It is never a bad idea to have some out of the money puts or some other hedge against a breakdown within one's portfolio, but that would be for hedging purposes and not for the exercise of essentially stepping in front of a locomotive.

Should some sort of warning sign emerge, we'll be sure to let you know or perhaps we will be just as surprised as everyone else when/if the market becomes unglued.

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