Friday, August 5, 2011
ECB Starting QE
This rumor, if it is true, which I believe it is, is a game changer. You now have the two biggest central banks monetizing debt. This will squeeze the European markets higher, thus moving the US markets higher. The S&P downgrade is mostly priced in, so if it does happen as rumored, it should just be a blip which would be a buying opportunity. I expect a squeeze into the close when traders realize what is going on here. There is now another QE program, this time in Europe. Plus, I expect a QE3 from Banana Ben at anytime.
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4 comments:
Its a paper currency world all policy makers and central bankers in power today will print rather than risk 2008 MKII... until those in power change plenty of nominal returns in equities to be made.
Looks just like the ES print from the 10th of Oct 2008... will in be just one day up before crashing again? If rumour is true I think we will tear back to trend break next week on ES
Well, I remember went from 840 to 1060 in 2 days. That's what I remember, so even if the dead cat bounce lasted just 2 days, it was 220 points. I see a very real possibility of us touching 1250 again if the ECB comes through with a Spanish and Italian bond buying program.
While I agree we are in a different time than 2008. And we won't go to the lows of 2008 (800 s&P) or 2009 (600)
I see no reason why we can not go to where we were last year before QE2.
1064.
I mean who here is going all in long for the next 6 months? No one.
If anyone is long it is for a quick move higher then everyone is liquidating again.
No surprises there.
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