Volatility

Everything is political now. The Fed is busy blowing the mother of all bubbles in the form of inflating the stock market and the idiots in Washington are stirring the pot with all their posturing about the debt limit and Obamacare. Everyone on the planet knows there will be no default so all this sturm and drang is designed to influence the mindset of the voters. The result is multiple up and down 100 point days all leading to about where we are. I try to stay away from politics in these posts but I think the only real solution is to THROW THE BUMS OUT. ALL OF EM. There is something seriously wrong with the voters when the idiots in Washington have a 92% reelection rate. We have term limits in this country and it's called the vote. Vote a whole generation of idiots out of office and I guarantee their replacements will have improved hearing. Vote them out of office and the next batch will have hearing like as keen as a dog. Ok, so much for my mini rant. On to something sensible like gambling.  As you can see from the new Model Portfolio my bet on gold and oil is working well. DZZ, the short of gold is up 6.9% and SCO the short of oil is up almost 2%. My bet on the price of bonds was going well until the last couple of days when multiple days of monster gains in the Dow put it in the red. For now I'm sticking with my theory that the price of bonds will go up but I'm less certain about the Dow going down. The current theory floating around the internet is that the stock market is going to experience some sort of phase change in the next two years and go up to unimaginable heights before collapsing. If we don't get a correction soon, and it appears we aren't going to, the bet to place will be to go long the market and enjoy the ride. For now here are last weeks results and accompanying charts below. 

DZZ	100	6.52	6.97	+0.1600	$16.00	$45.00	6.90%	$697.00
SCO	100	29.61	30.16	+0.4300	$43.00	$55.00	1.86%	$3,016.00
UBT	100	54.86	53.81	-0.0301	$3.01	$105.00	1.91%	$5,381.00
Total					$55.99	$5.00	0.05%	$9,094.00