Wednesday Outlook: Bernanke Goes All In

Bernanke is living up to his reputation as helicopter drops of cash will rain on markets until his academic research is vindicated. It’s as most have been saying, “when push comes to shove, politicians and officials will choose to inflate.” Theoretically, barring heavy central bank sales, investors have been given the green light to buy gold and hold it until the Fed reverses course. Uncle Buck will also take a hit.

So, the markets love this and you can buy, so bulls say, what you wish with both hands since the Fed is determined to inflate everything. And, we know it’s the gift-giving season so the Fed tossed the bulls what they needed to make things look better by year-end. [Hmmm, I wonder if Crammer (deliberately misspelled) was trashing the Ultra leveraged long ETFs today? And, all those people he told to sell at the low, he now wants them to buy? What a guy!]

I haven’t counted the number of days like this we’ve had since the bear market began in January but there have been many.

Most volume today took place after the Fed announcement and then it was strong. Breadth was quite positive and may have yielded a 90/10 day but not according to Yahoo or the WSJ below.

Meanwhile, our man in Geneva [sounds glamorous, but he soon returns to Boise] believes it was a 90/10 day based on his calculation methods for the NYSE.

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