To QE3 or not to QE3 that is the question?
It is that time again, we are getting a stock market decline and the worlds largest long only hedge fund the FED, has it's finger on the trigger.
QE is designed to do just one thing and one thing only
Raise stock market prices so the President will get re-elected
Whatever long term ramifications these actions might have are not even considered. The main focus is power and control, plain and simple. Manipulating public opinion is all politics is at it's core. They want to get you to go along with the changes they want to make, so they throw you a bone here and there along the way.
The above chart shows the ES and we are drifting down here slowly, not doing too much damage. Underneath the price is a model I have created for buy and sell signals in the stock market. I have the black arrows marking the buy zones, the sell zones which are not marked are when the blue line is under the red line. There have not been many of those as you can see but there was a timely one at the high. If you think about it, the FED does not want to boost prices when they are already rallying, there is no political gain to be had there. They will launch this when prices are heading down and close to getting into some trouble. I think this will be soon, but not immediate. We need more of a crisis for them to save us from it. Yesterday I did not detail the California budget situation, and I will not get into more detail on this either. The bottom line is what I stated above in red, and we are in the zone where I expect this to happen again. It is just too good to be true to see Romney leading the polls, some be good sized margins. They know what there tools are to change that, and they will use them at the right times. They need to "save us" on last time to "prove" that what they are doing is the right path to go down.
I am not going to explain what the components of that graph are, it has taken me way too long to figure it out. I can assure you this, you will not figure it out so don't bother trying, it is very different from what anyone would think it might be. It does not matter, there is no magic elixir to any of this stuff. All you can do is try and find some things that give you an edge, and then try to take advantage of that edge as best you can. This model is a little rough in that at times it pinpoints things to the day and others it takes a week or two for the turns to come about. It is really nothing more than a "we have entered an area where a rally should take place soon."
There was no trade in the Blind Man's Bonds System for today.