Random whining and oh yeah…a little on the market!

A few complaints…which will lead me to the market.

Evidence that the nuthouse is still full.

Venezuela elected to the U.N. security council.

Dems continue to lie and complain that there isn’t enough money for the CDC to fight Ebola. “Not enough money” and Washington do not go hand in hand as government spending is at an all-time record and that doesn’t even include deficit spending.

Speaking of Ebola…there is no downside to a ban on travel yet the powers continue to do the opposite. What gives?

Yes…and Ebola czar that knows nothing about Ebola…nothing about medicine…nothing about health care…but knows everything about spin. This dude was hired for one thing…politics…reverse the poll numbers that shows this admninistration again behind the curve on reacting to things.

Fannie Mae and Freddie Mac and mortgage lenders are nearing an agreement that would lower barriers and restrictions on borrowers with weak credit. After 5 years of the Fed bubbling up asset prices with their artificial rigging of markets, NOW they are going to lower the bar for subprime. As usual, horrible timing and lessons not learned.

Speaking of the FED, we told you to expect the Fed to start intervening as they have targeted market drops over the past few years. Every time markets went into correction, they started the yapping which led to higher amounts of printed money. The fed came out in droves as 3 fedheads came out and stated not only should we stop the lowering of QE but that we should be starting a new round of QE. This juiced the markets. In fact, you can time the market’s move to the minute.

Markets were stretched and extended to the downside as much as possible in the short run…which led to the short covering jam to the upside. WE EXPECT SOME MORE UPSIDE but are skeptical about how much. On Friday, with the Dow up 260, the Russell was actually down…so we may already be back to the divergences that hinted at an impending top. Over time, price will meet up with the now declining 50 day moving average. Of course, first, any upside has to meet the longer term 200 day moving average. We will know a lot more on how and where this first move off a low acts into resistance.

We wanted to leave you with a line we coined in the last bear market. Bear market rallies are sharp, quick, make you feel good, get people talking about it, suck you in and bury you soon after. Just in case we are going into something of consequence, we believe that line should be remembered.