Quid Pro Quo

Click charts to ENLARGE.

We get it. The overall access to credit has become severely constricted. We understand that this is likely to change not only the sentiment but the direction of the economy. But if we're paying the bill, we're not seeking quid pro quo, we're demanding it. If Americans are the lender of last resort (not Ben Bernanke), we expect to be compensated tangibly.

It's not enough for Secretary Paulson and Chairman Bernanke to demonstrate the SMALLEST shred of humility and penitence for their getting it WRONG. We're beyond that. Quid pro quo.

Asset allocation with pivots.
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DeMark Sequential (tm)
___________________________________20 day relative strength/by asset allocation
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Dow Jones Industrials, sorted by stochastics
_____________________________________-Cara style look at the 100 MUST stocks, sorted by RSI(7) weekly
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Today's mantra from the pundits on Tout TV is that this deal is NOT inflationary. Actually, they couldn't be more wrong. First, the Fed will clearly monetize the debt via money printing. Second, the reduction in debt destruction (if this works) keeps more dollars in circulation, meaning the value of each dollar is less. The dollar ROSE yesterday, BECAUSE of the deflation trade.

I believe the bailout is needed and will pass easily. I also believe that if you do not make a DEAL under these circumstances, you are irresponsible and don't deserve to be returned to office. A deal means quid pro quo. Wall Street works for us, not solely for itself.

Good trading and great risk management for all.

Educational use only. Never intended as investment advice.