Sunday, May 18, 2014


Everything is coiling, and all sell offs are being bought.  I would love to see the math on calculating the Fed credit declining upward slope and amount against their (Big money) buy/sell models.  My view is the Fed's balance sheet starts growing at an accelerating rate again this summer when the the Treasury needs buyers, and I wonder if they are rope a doping the indexes until fresh, leveraged credit comes into the market.  Oh by the way, ignore any talk of us raising interest rates for the next five years.  They are simply trying to confuse you.

I think I will start paying more attention to the bank index for a clue.  It has been weak as their only source of reliable profit is being reduced.

In the meantime I will just look for trades and stay very short term.  I am still short Biotech and gold, and long VXX.

On a side note, I just upgraded my trading system and am moving files over this weekend.  I will post the portfolio as soon as I reload all of my programs.  The option trades from my signals for subscribers have been on fire and if you want them go to

Enjoy the charts, and have a great week.  Please click to enlarge.

1 comment:

  1. The treasury will always have buyers, it's the primary dealers. The list is here Like I have stated before, the Treasury has NEVER had a problem selling bonds before QE and will never have a problem after QE.