Chart.ly is great, but look at the most viewed charts there and it's clear that the majority of people don't understand how the Fed's low interest rates have already caused the next bubble-bumbling-bubble blowing Bernanke either can't see beyond employment numbers or Capital Hill has the claws into him-or even worse which I dare not say.
In any case, the crowd is following along looking at the SPX for their clues when GLd just took a huge hit today thus far and banks have a lot of volume but no upside-most of the major averages the last two weeks are at a loss or can't do much better than 1%-the action isn't there, the reason isn't there. Look at the US Dollar index and ask, "Why so much volume and no significant downside?" "Why's Bernanke talking up strong dollar policy?", "What happened to Japan when they kept rates at or near 0%?"
History repeats and the Fed is about to cause a repeat of the last several years and many are missing the trade with their fascination with the S&P or the QQQQ. To make money you need to see something the crowd missed and it's as simple as today's move in UUP. Take a look, leave a comment and tell me what you think?
Friday, December 04, 2009
THE FED, BUBBLES AND UNINTENDED CONSEQUENCES-FOLLOWING THE CROWD
Posted by Brandt at 2:28 PM
Labels: banks, bernanke, carry trade, interest rates, japanese carry trade, strong dollar policy, US dollar index
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