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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (108496)	4/10/2018 7:43:55 AM
From: RetiredNow	Read Replies (1) \| Respond to of 116836

Real Man, why would you do that? QT is draining liquidity. On the way up, QE had a 92% adjusted R-squared to the SPY. Do you think a high correlation will not be in the offing on the way down with QT? My bet is that it will. The winners will be the holders of cash. There is no Yellen put left. Powell intends to break these bubbles and rebuild dry powder at the Fed. He has the perfect scape goat in Trump, who has claimed credit on the way up and will get the blame on the way down, so the Fed can act with impunity and blame Trump and his trade wars. I would not be so sanguine on a BTD strategy. Better to trade the ups and downs like Rarebird does with tight stops and limits, until you know which way QT will drive the SPY. I've already made my bet. I'm 35% cash, 20% stocks, and 45% short dated Treasuries and TIPs. I think the SPY has 30-40% more of a correction from here. In April alone, the Fed will need to sell $50B in Treasuries and MBS to stay on target ($20B in catching up to target from March and $30B for April target). There vice is tightening relentlessly and China is the nice sideshow for the masses.