7 MAR 2011, Monday (AM)

• Near term indecisive, sideways market continues as price whips between FEB highs and recent MAR pivot low.
• Crude oil above $100 a barrel again makes for tough sledding.  Recession started in 2008 as oil climbed through $100 on its way to a $147 peak...the economy couldn't handle that drag then...similar?  Anyway.....
• Longer term is up (price above 50/90 dMA's).  
• Below, weekly chart (weekly 20MA ~ daily 90MA)...If, if.....

 

• However, the Feds and Da Boyz have been banging this thing ever upward via POMO (various bailouts and QE's in chart above), so who knows.  POMO is currently scheduled to end in JUN.  Based upon what happened last year when they stopped the first round of POMO in MAR 2010, it was "whoopsies" after that for about 6 months. 
• Time will tell.
• I hate markets that are not free to trade.  Just adds another element to be aware of.
• Below, since the Federal Reserve seems to follow the 2yr US T-Note anyway, why don't we just get rid of the Fed and allow short term interest rates to be set by the market?  You know...the old fashioned way when risks were analyzed and weighed prior to investments being made.  Factors affecting investment in debt / interest rates; 1) demand, 2) inflation premium, and 3) risk of default premium.