Upside Continues

The upside continues pre thanksgiving attributed to the light volume is my thesis.
I am here to affirm my all for DOW 4500 and even think 3000 is very very possible.
Here is the main problem:The Fed continues printing money wantonly, thus rendering the value of the dollar 50 to 80% less than where it currently is. Bernanke is on record as saying that if he was faced with Deflation, which is where we currently are, he would start printing money. The theory being that printing money would basically "level" the deflation by doing something inflationary (printing money is most certainly inflationary). Germany, and others, have tried this in the past (does anyone remember one definate reason why Nazi Germany was born?) and it's never succeeded. Frankly, I don't think it can succeed, BUT what it can do is give the illusion of wealth. Unfortunately this is why I rage against the machine, because its pretty safe to say that while prices of homes, and even the stock market could "stabilize" its illusionary and in fact the opposite.

Yesterday the FED PRINTED ANOTHER $800 Billion to help the consumer credit market. Where will it end the FED is basically printing money 36 hours a day :). I really think we will get over $20 Trillion when this is all over. Also I think their is a realistic possibility that the US Debt rating get downgraded in the next 3 months which would set up the treasury notes rising in yield thus starting the inflation cycle of the global slowdown.

I have one more thing to say about the appointment of the new treasury secretary by Obama. It is my feeling that because he is already a FED governor(New York branch), he will prove to be just as ineffective as Paulson. Listen up here folks the DOW ended @ 8700 today I think the most they can get out of this market is 10250, so we have 1700 point to go on the upside. Watch next week for 910 area with the possible cycle high coming in around 1023 area. That's it folks so if you long you better take profits if they big guys come in next week and think we should go higher.


Have a Great Thanksgiving