TMN has been calling for a topping formation for a couple of weeks now and, as it turns out, this call has been a bit early, as we are still stuck in the procedure. It is TMN's deepest belief that QE2 will be a grand failure that will cost Benny his job. It will surely not succeed in the creation of jobs, neither will it succeed in increasing unit sales in anything of significance. It will just backfire badly. There are two items that will embarrass the FED every single day of the week if they "have to" and these items are long end bonds and Gold. The one person (and there will be more) that will just not stop questioning the FED's insane policies will be Ron Paul who will be chairman of the monetary policy subcommittee. QE1 was done to save the "system" and QE2 is done to boost stock prices? ZimBen is clearly out of order if he thinks that this will have any impact on spending and job creation. In any case, so far the rally in stocks has not even produced a new internal high as the chart below shows.
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Biotechnology shares that had the lead for most of the rally out of the March 2009 lows have not been very responsive to the FED's antics. They did not even produce an up day on a day like today...
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