Wednesday, July 10, 2013

Quick market thoughts

The dollar is higher by taking the bid out of gold.  $GS can take the bid out, drop the gold down to push the dollar up.
They are doing this because the dollar was collapsing because every time Bernanke printed dollars to buy the bonds, it weakened the dollar.  He was printing so many of them, it was killing the dollar and causing the price of groceries to go up.

The dollar will collapse, but in the meantime short gold and mining stocks.

The story is the economy is hot because the housing industry is on fire.  The truth is applications are dropping on the vine.  Everyone was buying out of fear a while back as interest rates started up.  The banks will drive the stock market.  While the S&P is between 160 to 168, you can trade, but you can't invest.  

$GS reports next week, it has to go above 165 in order to get this market moving.  If they run the banks next week, then the market goes higher, if not, then it's all over.

The economy is not in good shape if you look at the GDP.  We are sitting at 1.8% growth.  The stock market is going well, but not the economy.  

If $XLF goes above $21, then buy it because the banks will be rigged.  If the banks are rigged, we can go higher till September.

Best bet for now is to do nothing until next Wednesday, then we will know based on what happens to $GS what the market will do.

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