Since day one of Ben Bernanke's testimony did not provide any clear signs of when we could see another round of quantitative easing, Big Ben has gone into obfuscation mode and he's playing it close to the vest. Perhaps, we might need to look at the moon for a market tip. On Tuesday Mr. Bernanke will have the second day of his testimony and the moon, yes the moon, will have a new phase. Since Ben will remain tight lipped, we might need to review previous studies on how the major indexes have performed during the changing of the moon's phases. The market psychics aren't answering their phone Actually, the Buy the new moon and Sell the full moon strategy in past years has had some success, but so far this year the S&P futures contract is not highly correlated. Surprisingly, the inverse of this strategy has worked - buy the full moon sell the new moon has been profitable four months out of seven this year. Maybe Ben will take some cues from his lunar guides and invert his monetary strategy. Since QE's past haven't worked and QE's future have already been priced into the market, maybe he should tell Congress that he is turning off the printing presses and that his policy of forced liquidity has failed miserably But expecting that type of prudent talk from "Helicopter-Ben" is as likely as a square moon. Trade well and follow the trend, not the so-called "experts." _________ Larry Levin President & Founder - TradingAdvantage
Jim Rogers has an interesting take on Helicopter Ben's utterances. Do the opposite to what Ben says at the Senate hearings. :lol:
I saw a clip on YouTube where it is clear that pressure is being applied to Bernanke to do something. He also mentioned that he still has things that the Fed can do, without mentioning what they were. I think something's up. I just can't imagine with all the pressure being applied that the Fed will just sit and do nothing.
He's already displayed his arsenal in 2001 or thereabouts when he laid out what they 'shoulda coulda' done last time (Great Depression). Ultimately it pulls down to two final choices: money printing and devaluation. Considering it's 'helicopter' Ben, next up will be a Rudd initiative to the population who'll promptly put it on their credit cards. Then his final play is devaluation. I've seen 40% mooted a few times. By that stage I doubt they'll care about international repercussions, but they may weather it considering the size of their economy. Either way I expect I'll be buried before the actual 'empire' collapses, but now the end is in sight I'd say. In 50 years US/Canada/Mexico will either be one big conglomerate in a world triumvirate, or lots of little nation states in the style of the former USSR and a collection of basket cases in the badlands. (e.g Somalias and Haitis)
