We are stealing a term here from our boys at "ATF". It seems hope is alive and well the last few days that Uncle Ben will save the markets with some sort of QE3 (or Operation Twist) of some sort. The numbers are horrible. Consumer confidence hit a low today. As we posted in a previous post last Thursday, Uncle Ben not doing anything would make the markets go up. The have been doing just that since his speech. The Fed has bailed the markets out everytime thus far and there is no reason to think they won't again.......except:
ATF and MSB's are at complete opposite polls again. MSB's point to a "double-bottom" and potential "Goldilocks" scenario. ATF'S report that the fundamentals are still getting worse.
Our view:
Yes, there is a double-bottom that may take us too 12,500 Dow or 1260 SP500.
No, It won't last. That would be the last time to get out before Dow 10,000/SP500 1000
Yes, There are major problems in here. They are more than just normal market corrections-they are structural.
Why the markets are going up right now? Hopium, Double-Bottom Formation, and Window Dressing at month-end.
We will look to short.....soon
