Thursday, February 16, 2012

BULL WINS!

Maybe....but don't bet on it. As the money printing goes.....so goes the market. If you haven't figured out the game yet then get off the merry go round. This bus doesn't stop until the printing press stops. Right now they have an enormous liquidity hole to fill and they have the spigots wide open to keep the liquidity from draining out. Without the impact of higher costs of essentials like oil and food stopping the printing presses the game will continue. While you fret about the costs of assets declining like homes, and commercial property, the big boyz are moving into the longer term protection from the eventual inflation as currency devaluation eventually will overcome the Kondratieff Winter. The question for you is what the timing is? If you adhere to the cycle theory then cash is still king. Just remember that the big money has a lot more cash than you and can weather a lot of the first tsunami wave of deflation. If you are going to paper trade the casino then you have to hang on to a large cash position in case they turn that 200ma on the major indexes into a hard south charge. Many of the miners are showing evidence that they "might" have bottomed and are getting ready to break out in a series of higher highs and higher lows.....I'm just not convinced yet and won't make the call. I have a solid core of miners and will hold tight. If Iran gets hit you could get a real dump in most markets so be cognizant that this could provide a great chance to get into some great buys on the miners and resources like PAL SWC . I have been very busy and apologize for neglecting this blog. Nothing has changed in my outlook and I expect us to have some great trading this year....NEXT YEAR it will get ugly......best wishes to all of you and I hope you have plans for you and yours. gl




1 comment:

  1. Looks like Robert Prechter is going down. Those guys in Elliott wave just don't get it. You can't fight the Fed. You will lose.
    Great blog Kli keep up the good work.

    ReplyDelete