SeeTheLight

Friday Outlook: Commodities, Global Markets

Monday might be interesting. Obviously on an options expiry day there is no room for reality. Everyone should be taking this market day by day. I am. Sure we are in a liquidity driven bubble here but I'd like to note the following:

In 1930 the DOW rebounded 48% off the lows without the magic printing press running at top speed (and buying treasuries in a loose attempt to convince us that the Fed is not monetizing the debt). But this time, the Depression-learned Bernanke has it all figured out, he's determined not to make the same mistakes they made back then, he just wants to make bigger ones (albeit in the opposite way).

Our savior Helicopter Ben, is going to build the biggest bubble ever and do it with the Lender of Last Resort (so there will be no one left to bail us out when it bursts). Sure we have retraced 60%, but if this turns out to be the biggest bubble of the them all, it could go much higher. And of course, if he succeeds, the following crash will make the great Depression look like a mild hangover.

But as I said in previous posts, you would be silly not to profit on the way up and the way down, as well as being prepared for the moment that the music stops (QE stops) because it won't take long after that to get new Everyday Low Prices.

Good Luck all.