The S&P 500 Has Peaked for 2011

[Storm]

This is one of those things you have to quote Keynes for:

Markets can remain irrational longer than you can remain solvent.

It seems the Bernank's firehose in front of the tidal wave is working, at least in propping up the stock market, but either global inflation expectations are overblown (look at gold and silver - it is crazy) or there is some really crazy asset inflation going on right now.

What is interesting to me; I always assumed QE2 was meant to drop the bond yields down so that homeowners could refinance at much lower rates, and save the housing market.  It seems to be having the opposite effect, perhaps as solvency concerns come into play and investors move out of bonds into the overheating stock market.

So, will they reverse course?  I think QE3 is inevitable, but it seems that rising bond yields are going to hammer the housing market, or what's left of it.  I can't imagine how much home values will go down if we hit 7 or 8 % mortgage rates.

[MediumTex]

1335.54.

It may be breaking free of the MediumTex tractor beam.

FWIW, I popped a new flux capacitor into my tractor beam field generator.

I think that is why we are drifting down below 1332 again.

[dualstow]

tractor beam in effect

[MediumTex]

tractor beam in effect

I think I will call my investment newsletter "The Tractor Beam Report."  

[dualstow]

This evening there are a few people in Texas with very clean carpets saying "That guy was right!"

[MediumTex]

This evening there are a few people in Texas with very clean carpets saying "That guy was right!"

There's a lot of year left....and I don't share market tips with my clients...but I do leave very clean carpet in my wake.

Perhaps a haiku:

MT called the top
Cleaning carpet keeps him fit
Query: Fit for what?

[dualstow]

hahaha! haiku and a Blackadder quote all in one day. A man after my own heart.

[Coffee]

Serious question: Is the carpet cleaning gig a good hedge against another Great Depression/economic meltdown?

[MediumTex]

Serious question: Is the carpet cleaning gig a good hedge against another Great Depression/economic meltdown?

It's a good hedge against me having a nervous breakdown from bending my mind up one time too many at my day job.

It truly is just a way to make a little extra money, get to know people in my community better, and get paid to work out.  I just did a job this evening and I feel GREAT.

[Coffee]

I'm totally fascinated and revolted by this idea, at the same time.  LOL.
I want to talk with you about this at length, sometime. 

Adam

[MediumTex]

I've always been a little quirky.  This carpet cleaning thing is just the latest in a long line of side adventures.

The key is to follow the internal logic of the decision.  If you understand the internal logic, it makes perfect sense.  It's when you try to understand it using some other logic that it seems strange.

PM me if you want to know more.

[dualstow]

Earnings have finally trumped the tractor beam.

[MediumTex]

My newsletter subscribers are in a full on panic.

I'm getting waves of cancellations for the inaugural issue of "The MediumTex Tractor Beam Report."

The horror...the horror.

[fnord123]

I'm with Wonk, I think the market will continue higher.

But since I'm in the PP, I don't care all that much

Looks like Wonk & I's faith in The Bernank was well placed - 1347.6 as I write this and climbing!

However, once QE2 ends, I expect some bad news (Ireland, Finland, Greece, Portugal, Spain, Iran, or something else - take your pick) will suddenly matter.  The market will crater and MT's prediction will look pretty good (within a couple %).

[dualstow]

While I'm not excited about your grammar in that post, fnord ( -- I's  ???  --- ) I'm canceling my subscription to the MTex tractor beam report and jumping into the fnord/wonk newsletter.

[gizmo_rat]

I am dissapoint, but if you call the top of leather chaps right I'm still going to be stinking rich.

[MediumTex]

I am dissapoint, but if you call the top of leather chaps right I'm still going to be stinking rich.

Just make sure you let your leather chaps fully dry after each use, or you will just be stinking.

[Reub]

This reminds me of the Seinfeld episode where the carpet cleaners are actually "Moonies", but they have no interest in recruiting George. This irks him to no end. So MT, are we all "recruitable"?

[MediumTex]

This reminds me of the Seinfeld episode where the carpet cleaners are actually "Moonies", but they have no interest in recruiting George. This irks him to no end. So MT, are we all "recruitable"?

The first rule of Carpet Cleaning Club is you don't talk about Carpet Cleaning Club.

There will be no carpet cleaning recruitment.  When carpet cleaning, I enter a zen-like trance as I commune with the fibers.  There is no way of "recruiting" one to this experience. 

Each cleaner must find his own way.

[moda0306]

MT, be careful, when forum members start showing up on your doorstep and you yell at them to leave, they might not take you seriously.

[Reub]

I am beginning to wonder if carpet fibers can have a hallucinatory effect.

[l82start]

MT, be careful, when forum members start showing up on your doorstep and you yell at them to leave, they might not take you seriously.

i heard if you show up on his door step with "Two black shirts. Two pair of black pants- One pair of heavy black shoes-  Two pair of black socks and two pair of plain underwear" and wait three days....

[moda0306]

MT, be careful, when forum members start showing up on your doorstep and you yell at them to leave, they might not take you seriously.

i heard if you show up on his door step with "Two black shirts. Two pair of black pants- One pair of heavy black shoes-  Two pair of black socks and two pair of plain underwear" and wait three days....

You forgot the chaps.

[Lone Wolf]

Why oh why is Fight Club not on Netflix streaming?

Oh, and if anyone else would like to feel really old with me, can you believe that came out 12 years ago?

[MediumTex]

Note to Subscribers:

I turned my tractor beam back on.