range bound until further notice from the fed

With QE ending the dollar has been rising and now over the 50dma, the stock market is looking terrible as is the economic data over the past many weeks. Things are pretty horrible out there and there isn't really a trade I can see to be very enthusiastic about long or short until we know exactly what Uncle Ben plans to do.

By now everyone knows of the abject failure of QE1 and 2 and last week's dismal employment reports confirm the impact of the stimulus (lack of) efforts by OweBama and the Fed that despite the record doses of both monetary and fiscal medicine, they did not produce the desired results.

Now the Fed is trying to save face, and seems like they are trying to save the dollar and the result is that the SPX has fallen substantially and 401k's are going down the tubes and the faux recovery fizzing away (or off the cliff) due to decreased consumer spending. Right now the Fed and OweBama have to make a decision. 

Fed has to decide whether it wants to throw Owebama under the bus, that happens if there no stimulus is provided, but you have to think there will be, the "Bernank" is scared to death of deflation he has said so many times not in those exact words but believe me he has implied it. So I doubt no stimulus is coming. Truly, I have no idea what they are going (no one does) to do but you'd have to think (guess) it will be pro inflation and not pro deflation. 

So the secular trend which is Inflation growth and the growth or assets related to inflation will increase in price. How much inflation, again who knows how much stimulus etc at this point is guess work.

 

So what to trade now? Again one really knows! And I really think people are worried and they are not making any big decisions and that is why you are seeing a range in trade for oil, and metals.

So there really isn't anything worth while to report one even a daily basis. Preserve capital, buy physical at the low end of range if you can and wait out the summer.

Just a heads up for regular visitors to this site. I'm not going to be putting up charts every day unless there is a move out of this range or we have a shift in policy. If you are trading, then you obviously know what you are doing and you don't need my help. Please note as the range contracts as it has it will create a volatility squeeze which will lead to an expansion phase in price so watch for that. Best of luck