Friday, November 5, 2010

Movement of Capital Often Hidden In Plain Sight

Absolutely correct, Jim.

The movement of capital is often hidden in plain sight. Jim is a proven money maker because he understands and anticipates the movement of capital extremely well.

RY,
Eric

COT Table:


I agree with Armstrong and our own Eric on the primary direction of equities for no good fundamental reason whatsoever.
It is endemic to Currency Induced Cost Push Inflation even if Armstrong sees different reasons.
I am a buyer of calls on equities, near the money, 90 days out at least, on downdrafts.
I am buyer of puts on the long 30 year bonds on 2 point jumps.
I will cover the long bond puts on the fall, and reinstate on the rise.
I will do the opposite on the equity calls.
QE will deliver both.
It clearly will due to flow of funds be a bullish increment to equities.
Since QE is not being used on 30 year bonds it will offer the rises for buying puts, and pay off on the falls, chopping sideways to lower with only the short end holding them from a wide open break.

Source: martinarmstrong.org

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