General Stock Ideas

[bigworld]

scstocks: If you look at the progression of Fed actions from QE1 to QEII to the current "Operation Twist", each successive round of stimulus provided less upward momentum in stocks and for a diminished length of time. Which is why I assume that if and when Bernanke announces the stimulus scheme that replaces the Twist we'll have a run to new intermediate highs in the major indices, but that the rally will fade as summer goes on and that by summers end we'll see new intermediate lows down to the 1000-1100 range in the S&P. So I'm already playing what I anticipate will be more Bernanke Bucks...its the only game plan he knows. I have been slowly selling more HDGE and I'm almost out of PSQ. I think I have more than enough GDXJ so I'm looking at some of my other old favorites like XME. I'm playing this as a short term rally only..to new intermediate highs in the Dow, S+P and Nasdaq. Commodity plays will rebound even stronger than the indices. But when this coming rally fizzles out I'm back into HDGE, etc. The Dollar is in a topping pattern of lower highs, when it corrects downward we'll see a rally in risk assets.