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Category: Lee’s Free Thinking

You get what you pay for.

The single Fed mandate

Every time I hear about the Fed dual mandate I feel it’s part of some kind of “find hidden words” game. The real thing is not what they say

The dual mandate says “maintain price stability” and “empower the maximum employment”. Immediately confusing, because I see nothing dualistic here. It never happened in history of any […]

Should I believe oil contrarians?

I’m very confused. Usually the press is a big contrarian indicator. For example the euphoria about economy makes me think that the stock market is a toast. But the abundance of bearish materials on oil (like this one) is very confusing. It would suggest that oil should keep going higher.

But I don’t believe that. You […]

Ben and China – the deal is done?

There are two stories that I’ve posted in my feed (the link at the navigation bar) – one is that China just made a bold statement about Ben printing money and another that monetary aggregates just turned into freefall mode (i.e. we are witnessing the start of the classic deflationary spiral).

What to make of that? […]

The recession is over

As the market just (most likely) formed an important intermediate top it is the good time to celebrate the end of this recession. The bear market rally always ends on perfect news. The end of the recession seems good enough to me to mark the top.

The article I’ve linked above is the perfect example to […]

FAS

Just one simple chart to see how the triple-leveraged financial ETF from Direxion was perfoming during the rally from March lows:

The performance is compared to simple, not leveraged financial ETF (XLF). As you can see the slippage is amazing. I’m curious to know what is your downside target for the correction (if the correction ever […]