Hi friends,

Today is the first day of Bernanke’s speech in front of the Congress. Today, is the first time for a very long time when I saw Bernanke nervous, not sure about his words, and on some points of the speech even broken and shaking voice.

He knows what everyone already knows, the QE is the only fuel of this rally in the markets. The US Dollar suffers to be weaker against the majors and this is NOT good for the economy as in the stage that Bernanke will have to raise the interest rates, US Dollar will be even stronger, and it feels that this is the first thing Ben wants to avoid.

Bernanke afraid the day he will have to cut the QE, and if you ask my view, I don’t think he even really considers that as long as he is in the head of the Fed. House market is one of the most important sign for economy growth. And even that dropped hard suddenly in today’s reports showing that building permits and housing starts, both dropped hard.

So to make long story short, in my point of view, Bernanke bluffs in his speeches and as long as he is the leader of the Fed, he will find reasons to continue with that. More and more “drugs” into drug addict market can’t guarantee a happy end, and I know I am not the only one saying that. I am a part of those who really scared of the “day after” and do all I can to be prepared.

And as I said on the weekly review, as long as this is our conditions in the market, I prefer to look to sell majors rather than buy for swing long term.

Wishing you a wonderful evening

Until next time

Vladimir

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