This is the only etf that is at multi year lows. Stock market is at a multi year high and agriculture prices are falling? The USD has not rallied that much to account for this. I suspect that institutions are not buying commodities to show that there is no inflation so that QE can continue. After they sell, they will move up commodiity prices to cause inflation so that equities start to sell off. This is how the crooks make money.
Hopefully, the GOP will be more prepared with the right questons to make Bernanke look like a total idiot. It is disgusting that the FRB is forcing investors to invest in stocks because there is no other alternative.
Federal Reserve Chairman Ben Bernanke met privately last week with House Oversight and Government Reform Committee Chairman Darrell Issa and other lawmakers to discuss the central bank’s efforts to stimulate the economy and how it could exit this strategy in the future, according to people who attended the meeting.
The meeting followed a letter that Issa (R-Calif.) and Rep. Jim Jordan (R-Ohio) sent Bernanke in April expressing dismay that the Fed was not providing lawmakers with more information about how in the future it plans to wind down its bond portfolio, which has grown to more than $3.3 trillion as a result of the Fed’s efforts to boost economic growth.
This means that the rally is mostly short-covering and most shorts have capitulated. There is obviously no buying on long etf's as indicated by the low volume. I don't understand how everyone on CNBC is saying BUY but nobody is buying or the volume would 2-3 times higher. This is a short squeeze planned by the group that controls the markets and they will sell to take profits soon.
Deutsce Bank says to stay long equities because of momentum. Now, if the USD moves up and commodities move down, why would equties like oil, mining, and material companies move up. If the USD moves up, the rally cannot and will not continue. DB says that investors will sell commodities to buy equities. This is crazy considering most institutions have less than 5% invested in commodities. The analysts are so confused by this rally that they are sending garbage to clients. This is what happens when markets are in euphoria.
This is the latest article fromt the Telegraph.
Chief economist Joachim Fels tells us that not a single investor at the bank's Florence forum thought the world economy would rebound with any strength later this year.
Just a quarter expect a return to trend growth. Some 57pc think there will be no escape from the "twilight" conditions afflicting the western world, and 20pc expect an full-blown global recession. That is a remarkably bearish set of views. Yet the same investors are overwhelmingly bullish on stocks and property.
Who is right or who is lying?
Goldman forecasted oil to be $200 and even $1000 a barrel in 2008 using their models. We all know they were manipulating prices to gain from their trades. Now, they are back using the same devious tactics and fooling the public. Goldman said that EURUSD will be at 1.40 a couple of months ago and Goldman said that treasuries will fall immediately before they rallied up 5%.
Goldman is very good at analyzing individual stocks but all other analysis is for manipulation.
"The Fed has said their policy can't really create strong employment over the long term … I think the results of QE are not what they ought to be. One of the questions is why do we continue it," Brady said. Bernanke's testimony follows a parade of Fed officials in the past two weeks who have provided a variety of conflicting views.
I think Bernanke will be crucified tomorrow because the results of QE are temporary and the economy does not survive on momentum. People need long lasting permanent jobs and Bernanke is creating temporary jobs via the wealth effect.
The mid/small caps are in bubble territory now but the MM's are saying nothing about that. Don't refer to the YHOO P/E but go the the SPDR/ISHARE sites to see what the P/E of MDY/IWM/IWO really is.
Most insiders have sold UPS in MAY and the transportation etf IYT is down today. The rally is stalling and there is nobody on CNBC calling for a correction. Shorts have totally capitulated and nobody is really expecting a selloff.
More asset bubbles created by the Fed. How does the FRB get away with all these mistakes?
Call sellers were assigned early today which means they don't want to wait until next week to sell.
The premarket volume is almost zero considering today is OE and there is talk of QE tapering. The pros that are manipulating are getting paid well by all the institutions that are planning to sell today.
The call premiums are just ridiculous. There are call buyers but no call sellers which means bears have capitulated and there is no hedging with covered calls. This is a contrarian indicator which is a symptom of euphoria and no fear. The bulls are the "Fast Money" idiots and all their followers.
The forex market is much bigger than equities and the big surge in the US dollar means that institutions are positioning for a big pullback.
I think the only players left in equites are the Tepper and CNBC type which keep ranting BUY. These are not long term holders and they will exit in any sign of trouble.
It's not possible for the ETF's to be moving up when the stock holdings are moving down.
There will be profit taking because the pension funds, insurance, and all financial institutions cannot meet their obligations with 2% annual dividends and bonds that yield less than 2%. This is why the Fed wants stocks to move up. When the institutions sell, the Fed will want stocks to go back down.