TGIF – Testing our Pre-Fed Levels

That was the day the Fed announced QInfinity and the Dow gained 200 points from 13,329 to 13,539 and the next day we topped out at 13,596 and held just under 13,600 until October 9th (Tuesday, in case you lost track) when we dropped 100 points and now, we're back at 13,326 – on the road to nowhere - exactly one month later.  

Does that make sense?  Now, I was the first to argue that the run-up to QE was already overdone and that NOT getting QE that Thursday would have been a complete disaster but we not only did get QE3 but the Fed threw in QE4, 5 and 6 for good measure – making it very clear they were never going to stop giving us free money – unless someone stopped them.  

So what could have gone wrong?  Mitt Romney.  Actually it was Barack Obama – he blew the debate and that allowed people to believe Romney actually had a chance and suddenly Romney's fatwah against Bernanke became an issue people were taking seriously.  Maybe QInfinity was only going to be QUntil Romney takes office.  That spooked investors and, suddenly, all the gains of QEvaporated in just one week.  

And you can't blame the GOP – expanding Government spending (while saying they are cutting it), robbing from the poor and giving to the rich, destroying the environment, throwing the poor, seniors, students, veterans and the middle class under the bus and charging $5 a gallon to fill that bus up with fuel while avoiding all taxes is what they do – it's like inviting a bunch of tigers over for dinner and then being upset when you realize they'd rather eat you than the macaroni and cheese they said "would be fine."