Well, a big FOMC day is looming, and Ben (“Shalom for Brains”) Bernanke and Janet (“Gimme a Pair of Duracells – Quick!”) Yellen will be squatting over us all Wednesday at 11:00 a.m. Slope Time, with the bearded wonder mewing out his platitudes to the dim-witted public half an hour later. I am hoping my 75 short positions rush out onto the football field and form a magnificently obscene gesture, Stanford Marching Band style, once these yo-yos are done with their dirty work.
Of course, these two, and their cabal crew, are the sworn enemies of the champions of truth and justice (that would be us, in case you’re a slow Sloper), so it could get ugly. But I wanted to muse tonight as to how much the powers that be might permit the indexes to sink before they doing something Dramatic, in keeping with their Dual Mandate, which of course is to:
1. please Goldman Sachs; and
2. please J.P. Morgan
So below are various indexes and what I believe are realistic short-term goals (in teal) and medium-term goals (in yellow).