If the Dems lose the Senate look no further than Barack Obama!

President Obama is the face of the Democrat party. He is the head honcho, top dog, big cheese. Every word out of his mouth, every step he takes, every mistake he makes, every success he has, every truth he tells, every lie he tells, every thing this man does is watched, followed, applauded or put down depending on how you see things.

There is only one problem. There is not much to applaud and a heck of a lot to put down. So if the Dems lose, look no further!

1) $18 TRILLION OF DEBT: Of course, we cannot blame the Prez for all of this debt but we are approaching $7 trillion of new debt since he became the Prez. This from a man who came in saying he would do everything to cut it in half. In fact, this was his first lie as he immediately added a 100% debt-laden $800 billion of stimulus.

2) TRANSPARENCY: That’s a funny one.

3) The IRS: A couple hundred visits by the IRS to the White House at the same time they are targeting opponents. The Prez himself said he would get to the bottom of it and then later said it was much ado about nothing. This comes under the heading…don’t piss on me and tell me it’s raining.

4) RED LINES: When the head honcho, top dog, big cheese threatens a country who is murdering their own people and then walks it back, all murderous dictators around the globe become emboldened.

5) FOREIGN POLICY…WHAT FOREIGN POLICY!: He talks harsher about Israel than Iran! He watches Isis grow and not until beheadings does he react. Again…Syria…Russia…shall I go on?

6) SGT. SCHULTZ: “I know nothing!” I know nothing about bad websites. I know nothing about losing insurance. I know nothing about higher premiums. I know nothing about what happened with Ebola. I know nothing about the IRS. I know nothing about Benghazi…which leads into:

7) II IS EVERYONE ELSE’S FAULT WHEN IT’S BAD BUT ALL BECA– USE OF ME WHEN IT’S GOOD!: Bad economic quarter…leftover from Bush. Good economic quarter…look what our policies have done. Something happens, it is Bush or the bad Republican’s fault.

8) HORRIBLE NEGOTIATOR: 5 Gitmo terrorists for 1 soldier who may or may not have been a deserter. And speaking of that, where is the report on Bergdahl? Aren’t we the superpower?

9) FAKE UNEMPLOYMENT NUMBERS: I could take the unemployment rate down to 2% today…just take millions out of the work force…just like the millions who have supposedly left the work force since becoming Prez. 2 words…PARTICIPATION RATE!

10) EMPLOYMENT AND LIVING STANDARDS FOR MINORITIES ARE JUST PLAIN BAD: The numbers are staggering. Food stamps, welfare payments…on and on. Too much talk of these payments and hardly any talk on how to get off welfare.

11) LIES IN PLAIN SIGHT: They are numerous but just look at Benghazi and Susan Rice. A plain lie in plain sight! Comes under the heading…they think we are stupid!

12) WHO IS THIS MAN? Who is this man that would go play golf and take pictures laughing, fist bumping and having a great time…minutes after announcing a beheading? The media called it bad optics. We wonder if this is just who he is.

13)IMMIGRATION! Don’t even know where to start!

14,15,16…) HIGHER TAXES…MORE MANDATES…MORE REGULATIONS…EXECUTIVE ORDERS…DECISIONS PURELY FOR POLITICAL SAKE…PICKING AND CHOOSING WINNERS AND LOSERS…PUTTING DOWN OF OTHERS…REFUSAL TO BRING OTHERS TOGETHER…

Many are now calling this the worst administration in ages…and not just from the right. This even coming after the mess Bush made out of his administration with Iraq and other things. I am actually hard-pressed to name successes. I know the Prez mentions the economy but an economy that is built on rigged interest rates doesn’t do it for me. And those low rates make the gap between rich and poor even wider. I am of the belief all politicians are lucky they have us. They are not the economy. We are the economy. Our hard work…our toil…our risk dollars…our knowledge…our expertise…our everything. Without us, government has nothing. I believe this Prez believes the opposite. He believes without Government, we would have nothing. Unfortunate!

BOJ takes over for FED!

There is a reason we have issued a disclaimer both here and on our radio show as the markets were heading lower. The disclaimer simply stated that if QE was indeed reinstated, all bets were off on the downside. Conveniently, as the Fed wound down its QE program (FOR NOW), the BOJ ramps it up. How about that? Nothing to see hear. Ladies and gentlemen, you get to decide if this was a coordinated effort as markets were crumbling. You get to decide if all this was leaked in advance which turned imploding markets into a bullish romp. Of course, there is never ever any chicanery going on between government and Wall Street. You obviously know what we think.

That said, markets have loved QE…and we know any weakness will result in Yellen going back to QE also. So markets are still listening and listening well.

Technically, this V-shaped move is what we call an outlier event. But as technicians, we deal with what is in front of us. We thought the big reversal was a near-term low and would lead to upside testing but no way we believed all the way into new highs. With markets more stretched and overbought to the upside than they were stretched and oversold to the downside, one would expect some backing and filling…eventually. We thought that would occur around 50 day moving averages but that lasted one day.

We will know a lot more this week on how the market takes in the V-shape. Not jumping the gun.

Lastly, make your vote count by going out and vote.

More QE and not by accident! Government run markets get even bigger!

We had so many other things to say today but as we woke up, futures are flying. The first thing we thought was another announcement of printing of money. And away we go. Japan, who we believe has been printing and easy for about 700 years…announces an additional monster amount of printing. This was no accident. This was a coordinated effort to get the gravy train continuing as our Fed could not go back on their word of stopping QE…so someone else picked up the slack. Money printing is a worldwide, coordinated effort. They refuse to let the markets trade on their own. The corporation called “Government Run Markets” just expanded. We will give this company the stock symbol GRM.

Major indices are amazingly gapping up to or just above old highs. We have now seen the mother of all V-Shaped moves. We have told you that no matter what the markets look like, if they surprise and expand the money printing, all bets on the downside would be off.

Now that everyone is frothed up, just a last little word to the wise. The recent nauseating drop ended with a big gap to the downside and a gargantuan reversal to the upside.

Weekend report is up next.

$18 Trillion of debt and Bloomberg/Business week says this…

I would love to comment on this lunacy but I don’t need to say much. Just repeat after me, $18 trillion of debt…$18 trillion of debt…

SOURCE: http://www.zerohedge.com/news/2014-10-30/businessweek-wants-you-become-keynesian-debt-slave

Random thoughts

The Fed will start another round of money printing on any real weakness in the markets. Count on it!

Every 10 cent drop in gas prices is $10 billion back into the economy. There is no bad news in this story. Biggest beneficiarys are airlines and truckers.

Much talk about this v-shaped move in the market failing. Not so sure. Easy money works. Still finding many more stocks and groups in the negative column than in the positive column…even with this recent move up.

Gold and silver sink deeper into the abyss. The gold bugs never give up though. Rule #1…never fight the trend and for the better part of 3 years, these areas have been bearish.

This administration remains a jumbled mess. Blasting the head of Israel while currying favor with Iran…different rules for different people on Ebola…a refusal to do what’s logical to protect the folks…a clear disregard on transparency and the treatment of any one who has a differing opinion…and that’s just this week.

Speaking of this administration, they are now looking to lower the standards on getting mortgages with some mortgages with just about no money down. Yup…that’s worked well before. Insanity continues to rule the day in Washington.

In case you forgot, an election will be held next week. My bet is the Republicons take the Senate over the Democraps. Nothing will change though as this Prez will enact whatever he wants. Never knew a prez could have so much power without the house and senate.

Watching my Knicks down 33 points to the Bulls as I write this. Just another crappy year coming up. Chicago is stacked and if they stay healthy, they win the east over the Cavs and lose to the Spurs in the finals. The Spurs are that good.

Wow!

When we thought a near term low was in, we expected a bounce over time into resistance. Instead, it has been a rompin stompin bull move. This rates a big wow. Only in a QE market can you get a long topping process that leads into a market top that leads into a mini-meltdown…a big reversal and a straight up move.

As technicians first, this is outlier stuff. We now have the Fed today. Markets, in the short term, have gone from massively stretched and oversold to the downside…to massively stretched and overbought to the upside. We would love to see some backing and filling to work off some of this heat. But in a QE market, anything is possible.

Most all indices are not just above longer term moving averages but are now above the 50 day. Again…wow! More to come after the Fed announcement.

Wednesday is all that matters!

Would love to give sound advice but the fact is the only thing that matters is the final decision by one person tomorrow. The Fed is in the midst of their 2 day meeting. Expectations are for the final taper in where they stop printing money. But I suspect after 3 Fedheads telegraphed things last week, we suspect there will be some language in where it is stated that “with economies around the globe softening, we stand ready to start another QE program if need be.” Expect the words “data dependent” also to give them room to change their mind.

Biotechs,Utilities, Transports remain the strength. Everything COMMODITY and small caps remain the weakest. Everything else is a tweener. Seems like we are right back to where things were before the recent breakdown.

We continue to believe upside testing can continue but now heading into the meat of resistance.

The Fed and the markets!

Terry Keenan was a sweetheart. Terry Keenan was brilliant without having to tell you she was brilliant. I loved appearing on her show and was stunned to hear of her passing at such an early age.  Make every day matter!

Quote of the week that will not be reported by the national media:

“Don’t let anybody tell you that it’s corporations and businesses that create jobs,”

Hillary Clinton

Yes…corporations and businesses do not create jobs but they sure pay you $250,000/speech!

Two weekends ago, we told you that we expected the Fed to start intervening. This was not a reach as every time markets have cratered over the past few years, the Fed’s minions would just open their mouths…and when markets did not listen, they would just create another program of money printing. They did not fail again.

As markets plunged on Wednesday the 15th, with the Dow down another 460, timely yapping started to occur.

First, James Bullard of the St. Louis Fed said that low inflation could lead to a pause in tapering. He didn’t stop there…adding “if the market is right and it’s portending more serious for the U.S. economy, then the committee would have an option of ramping up QE.” The S&P jumped 1% in 2 minutes. But back-up was needed. Eric Rosengren, the Boston Fed President conveniently came out and stated that same day that “could easily imagine” not raising rates until 2016.

But they weren’t done. Some dude from the Fed by the last name of Williams also came out and stated more QE may be needed if the economy faltered. All this was not enough. We also got the Bank of England announcing they would keep their money printing at 375 billion Euros. We got the ECB going against everything they promised not to do in announcing their own. We got China announcing more easing.

Markets then had two monstrous reversals leading us to tell you a low was in as the washout sucked out all the sellers. We expected a few weeks of upside testing into the 50 day moving average.. After all, the Fed had an election straight ahead. We were wrong. The upside testing did not take a few weeks. It took a few days. There was no way we would believe after breaking down so badly, markets would recover so much in such a short period of time. Then again, trillions matter.

You may not know this but we hate talking about the Fed. We would much rather talk about the markets. We would much rather talk about the two-way trade between buyers and sellers and their fear and greed at a specific price and at a specific time. But the Fed has made that impossible. They have even admitted that their goal was to rig the bond market in order to get interest rates down in order to get people into assets at whatever price. They have been wildly successful. Wildly successful to the point where even 10% corrections have been a thing of the past.

We would love to tell you what is next. After all, in normal markets, we would now tell you the market would have to go through some backing and filling after this latest Fed-induced, “V-shaped move up. But we have another Fed week where we get to hear what one person wants to do with trillions of dollars. Even if the Fed comes through and tapers to zero, we suspect they will include some language about further programs if the data worsens. After all, the Fed is “data dependent!”

We are finding leadership in Utilities, BIOTECH, RAILS and not much else. The Transports is the strongest index while the small-caps continue to lag badly. The small caps have been lagging for the best part of 10 months. All the divergences we have discussed for months are still out there but it’s Yellen time.

We repeat three things we have been saying for a few years.

THE FED IS NEVER GOING TO RAISE RATES UNLESS THE MARKET FORCES THEM TO.

WE HAD BETTER NOT GET TO THE POINT WHERE MARKETS SHOOT A CERTAIN FINGER AT THE FED AND START IGNORING THEIR MANIACAL MOVES.

THE LONGER THEY SUPPRESS THE NORMAL EBB AND FLOW OF THE MARKET AND ECONOMY, THE GREATER THE YONKING WILL BE!

Not 2…but 3 morons!

These people were selected to represent their party. One is worse than the other. And Candy Crowley should not be moderating an elemenatary schoold debate! Watch this nonsense!

SOURCE: http://www.mediaite.com/tv/debate-between-priebus-and-wasserman-schultz-devolves-into-absolute-shtshow-on-cnn/