Wednesday, September 18, 2013

NO TAPER!!! on the spot ..

So, all those 6 figure making analysts at Morgan Stanley, Goldman Sachs, JP, bla bla bla bla ... wanted us to believe that there is going to be taper. Questions is, was this a manipulation attempt to get retail investors like you and I against the market so they can buy? OR did they really get their analysis wrong - in which case, I might be interested in an offer... hint***

With that being said, what next...

First my favorite - GOLD - will be the biggest beneficiary of the decision and thus makes it the most attractive investment/trading opportunity in ST or MT. Reasons;

  • Markets will speculate USD to inflate that is already showing in the dollar drop as soon as the announcement. Investors will start hedging against with GOLD.
  • Emerging markets will rally, creating demand for GOLD. Exact opposite effect of what caused it to crash.
  • This just added a lot of uncertainty in global market. No taper - everyone will decipher it in their own way. But, GOLD has always been a hedge against uncertainty. No tapering mean future uncertain, which should in turn help raise GOLD demand and thus the price. 
Second - OVER ALL US MARKET - will actually get hurt in the ST to MT, I think. 
  • With all star analysts touting taper, market today was already priced with the speculation that 10-15bil will be reduced. When that did not happen, it has created confusion for strategists. They are probably scrambling through meaningless data to create some explanation - right now. As I can already see Bloomberg reporting interest rates to rise by 2015 whereas, FED just said, they have NO TIME line. All this is BULLSHIT speculation.
  • How will market actually react - initial buy frenzy (that is going on right now as Im typing this) followed by realization that economy is really not doing so good at all and then, pull back. 
To sum it up, I see a big correction on the horizon. When the market will go through 15-20% downturn from today's high, is when secular bull will take charge again. But, we need to see a good cyclical bear run. Which I see in the horizon pretty soon... 

Lets see... 

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