I have been talking to three good friends in the money management business this week and the consensus amongst us four was that sooner than later long term rates would rise. A commodity based hedge fund manager, a bond guru, a full service retail broker seem to agree with my thoughts and outlook. That got me thinking. IF we all agree, why isn't the DJIA at 5K yet? Why with all the dire news of 50K layoffs every day, drops in demand of 50% for cars, why can't I buy a brand new Chrysler for $5K?
What if Geithner and Bernanke instead of continuing to be history majors somehow became master poker players? Mind you It's a far stretch but read on!
Congress approves $835BB BUT the SENATE especially the REPUBLICANS get to be the saviors by sending back to el Presidente a scaled back $400BB-$500BB plan. Mkt was bracing for the whopper and they get a diet meal. Obama plays along... USD rallies DJIA coughs up a little because foreign earnings will suffer but all of a sudden, the mother of all short squeezes prays upon the naysayers... GREED is back and that is good as everybody I talk to has only fear and THAT is not GOOD for anybody!
On that note took some nice profits on TBT at $49.01, sold my SU flat ( too much debt), Sold DNR for very nice gain (16%), bought some UUU (keeping fingers crossed) and now TIM and BEN get the hill to cut the pork and let's have a PARTY!
Good trading to you!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment