Now that Obama is in the office for the next 4 years, I don't see any reason for the fed to prop up the market and come to the rescue right in the middle of the day by buying stocks.
No amount of cash thrown by the fed will push up the market if the stocks do not prove they are worth what they are worth right now. It's not like people will pay for BAC $15 when they post loss after loss even if the fed spends billions monthly. I doubt fund managers are idiots.
I see a 10% drop in s&p by the time we are done with the fiscal cliff.
UVXY. I see it trading between $20 and $40 by Jan 1st, unless they come up with a solution for the fiscal cliff and then there is a real chance UVXY will easily go under $10, but I don't think the fiscal cliff will be solved anytime this year. If it was that easy it would have been done by now.
With the fiscal cliff ahead I see VIX climbing towards 25-30.
I will trim my uvxy short today hoping to get a better price soon. Spy puts should do the job by January.
I really think spx 1472 was the top of the bull market. Usually tops and bottoms occur either in Oct or March.
Good luck all
S&P tops at 1490. EU problems will resurface- Mideast drives oil over 110.00
Gas prices will average over 4.00 in the spring.. Oil was kept low for the elections...
FED is playing with fire.. Noone wants our bonds..Buying your own debt is worse the Bernie Maddof's ponzi scheme. The debt issues will trash the markets...The USA has to stop this.
Its cold today--My garage is cold but I will not pay 4.49 for a gallon of kerosene
S&P down 15% by March