Chicagostock Trading

During the last FOMC conference on January 25th, we highlighted Chairman Bernanke's comments about how the inflation rate only hurts one if they "do their life savings in a mattress"  

Today, Congressman Dr. Ron Paul questioned Chairman Bernanke on this comment:

4:50- "In January at one of your press conferences you said that, you sort of poked a little bit of fun at people to downplay the 2 % inflation rate. But if you say it's 2, I say its 9, lets compromise for the sake of argument its 5%.  You said that it doesn't hurt you unless you're one of those people who stick their money in a mattress, but where are you going to put it? Are you going to put it in a CD and not make any money at all?"

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Notice a pattern above?

Over the past 2 months we have seen the 30 year bond attempt to breakout only to fail.  Thus far, we have seen 3 setups that attempted this.  The first one was during January 13-18, followed by January 30-February 2nd, and most recently February 27-29.  All these attempts have couple things in common, one they were all led by short squeezes as the market tried breaking down but was not ready to, and two- as they tested the highs and tried to break out, they failed and created a 3 point consolidation that was followed by a selling.  Most recently, once again the 30 year tried to breakout as short covering led the market into testing its 14400 level, only to once again fail and create a head/shoulders pattern with highs of 14403/14411/14404.  This thus far has once again repeated the pattern and broken down as the June contract has taken over for the front month.  Lower highs, and higher lows are now being created and this market is getting tighter.

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February 6, 2012, Prince Alwalweed of Saudi Arabia with Maria Bartiromo of CNBC - "Saudi Arabia went public by saying we will not let the price of oil go more then $100. Which means we can use our leverage, our excess capacity to be sure to pump more if needed, to be sure to have it not go over $100, so we will not impact and affect the consumer countries while they're getting out of the economy of the recession slowly but surely, hopefully."

Source: CNBC

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