THANKFULLY THAT IS OVER
Now that the elections are over, I just have one thing to state. If there is one single person who reads this blog who voted for Boxer you are hereby prohibited from ever reading this material again. How in the world anyone could vote for that pretentious B... is incomprehensible. I wish I had been that general when she pulled that mam vs senator crap. California is in very serious trouble I fear now that shill for the unions just got put back in the governors office. Now we will have continued support for all of the entitlements that got us to where we are now. There really is not a single ray of hope for this state that I can see, and I fear it is going to be time for me to have to move from here. I will hope for the best, but it is hard to believe this guy is not going to push unions and tax the wealthy. I hope every single business moves out of this state and it burns to be honest. This dumb ass liberals will never learn short of something that dramatic happening.
We should get a stock market a little more free of manipulation, so let's see what happens. It does appear to be smooth sailing ahead. The Vix above is nearing it's seasonal peak time, so if it were to begin to decline, it would reinforce the rally we have going already. You can see we are already in a downtrend in it which has supported the price of the SP 500 recently. I do still have sell signals in some of my other indicators, but so far they have all been wrong. I am hoping we move up enough to negate them, then get a pullback to buy into. We could very well just keep flying upward. I will admit that the indicators I use have not been very good in the stock market the last year or so, with the exception of the VIX. It has continued to be the best stock market timer their is. The oscillators have picked some nice trades, but for the most part have been diverging against the trend quite a bit, which does me no good at all.
I think the plan here is to look for buys in individual stocks, this freight train is not coming off the tracks anytime soon. The prognosticators of doom are going to be disappointed. This probably means that most every other market will continue to rise and the dollar will continue to decline. Since the correlations are so tight, it is hard to imagine making good money shorting anything with a stock rally this strong going on. Maybe in the softs, and meats which can trade independently something could happen. However, the inflation wave trend seems to be intact. This does make some sense if you think about it. The COT data shows almost all markets setup for sells, so it will be interesting to see if we get another extended period where that data is misleading.
There are many who believe that this rally is not legitimate, I have been amongst them. We have been wrong. However, one of the things that some of the naysayers state as a big problem, is an inflation wave. It could be that this manipulation of asset prices by the Fed will create that wave that could at some point down the road become a problem. For now I see no need to worry about that and just focus on the long side in most markets.