European Enabling

It’s better to have loved and lost then to have been hunted for sport by an eccentric German billionaire.

The European Central Bank is considering a major easing on the rules on the assets  it will accept from struggling lenders in return for loans that could expand by more than 10 trillion euros.

If this is true, it will mean the ECB will create a bottomless pit of cash-o-rama to backstop an economy that is falling to pieces with the grace  of a slow motion train wreck.

In other news, $JPM reports earnings today and some are looking for it to be their most profitable quarter ever. Amazing what funky and creative accounting can do.

Eddie Lampert announced that he is buying Sears $SHLD stock in his personal account from his hedge fund. Yesterday CIT cut off vendor financing to Sears, the company has recently been downgraded by all the ratings services and the company is closing stores. Lampert and Dimon are both members of the media appointed “genius club.”

The market seems to be consolidating for one last big move, at least that’s what the charts say to me. Barring an “event” (meaning something bad from Europe over the near term), I think there is still some juice in the market’s tank.

My subscribers are having a terrific month so far in January. If you would like to request performance, email me at: [email protected]

Have a great weekend.

 

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