So on Wednesday the Federal Reserve of the United States chairman Ben Bernake said that they will not do a full quantitative easing (extensive money printing or QE3), but instead continue short term treasuries purchases with “operation twist”.
The stock market reacted quite muted, then fell and on Friday bounced up a bit. The question is can the stock markets go higher from this level or can it maintain this level. In light of all the bad economic data out there and the fact that the summer months up to August and September are historically down months it would seem that the answer is a resounding “NO”.
I am going to short the NASDAQ and at the same time PUT options on AMD for Jan.2014 with strike price of $4.00 and also long on silver with ETF.
The above trades would have to wait though if the Federal Reserve decides to print more money and lift the markets of course. If Ben Bernake does do that then the decline probably won’t happen until after new year (Feb. 2013).
NEW YORK (AP) — A former Goldman Sachs director accused of feeding confidential information to a corrupt hedge fund manager has been convicted of conspiracy and three counts of securities fraud.
A jury acquitted Rajat Gupta on two other securities fraud counts. Gupta’s adult daughters hugged and wept as the verdict was read. He showed no visible reaction.
European Central Bank (ECB) will front run with inflation, postpone the suffering for a bit, but then a full on depression will come eventually. Of course this is not just happening in Europe but also the United States.
I agree with Ben Stein here. The market is at the top for now, so buying stocks here would be stupid, I rather wait for a correction (mini-crash). Even after the mini-crash you still have to be careful though.
The earnings for tech have beaten lowered expectations. Let me repeat LOWERED expectations.
Of course when the expectations have been lowered , earnings is easier to beat. So you see Wall Street analyst lowered it, therefore this is really manipulated to give perception of a better economy.
Tech sector is reporting lower and lower year to year decline. Wall Street and mainstream media are promoting Apple’s earnings so to mask what is really going on in the growth of the tech sector and the economy.
The mini-crash has not come yet. Maybe in May or most likely July or August, the reason is that it is an election year. The Fed need to manipulate the market so that they can inject QE3 (print more money) into the market to make it rise and look nice, after the mini-crash before the election in November, 2012. So the giving the illusion that the economy is doing well into November so that Obama can get re-elected.
Ben Bernake is the crack dealer and the economy and stock market is the crack addict. Fix a drug problem with more drugs that is the way the U.S Government thinks they can keep the dog and pony show going, but as we all know one day the crack addict is going to have some major health issues or die.
