Sunday, September 26, 2010

Itz Weekend Review

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What a week in the markets, what looked like a possible topping in equities the market got a shot in the arm from  David Tepper, president & founder of Appaloosa Management.*see post/videos below.
He basically see equities in a win-win scenario, he also commented on the recent Federal Reserve FOMC statement >>link Tepper stated that the Fed wants economic growth and they don't care and actually want inflation...when has the Fed ever taken that stance? Pointing out that M2 money supply for the last 2 weeks has turned up similar to March 2009, which is a leading indicator of the equity markets will follow.

The Fed’s statement shows that deflation is a concern affecting the future course of monetary policy...Fed makes clear that it wants to boost inflation
Changes in money supply have implications both for domestic economic activity and inflation. The Fed ceased publishing M-3, its broadest money supply measure, in March 2006. The SGS M-3 Continuation estimates current M-3 based on ongoing Fed reporting of M-3’s largest components (M-2, institutional money funds and partial large time deposits) and proprietary modeling of the balance. So why is M3 important? Because the money supply controls how much inflation we have.

Been awhile since the Itz Pix portfolio has appeared, one note the UCO holding, those that follow Itz on Twitter know that we've been trading around this and the SCO for several months now. But on a longer term basis see oil trending higher.

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