Tuesday, September 20, 2011
Do the Dip and Run
This market is going back to its old habits. The dip and run is rearing its head again. I can feel the dipsters desperate to get long ahead of Bazooka Ben and more QE goodies. No one dares short with the bazooka aimed at the sellers. Expect a finish near the highs, probably to 1211-1215 area.
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3 comments:
MarketOwl, what's your opinion on what the Fed the actually will do tomorrow? Do we sell off or burst higher and burn all the non-believers in this rally?
I don't know what the Fed will do, but since the equity markets are calm lately, I expect them to do just Operation Twist which is expected by everybody.
I am not expecting much of a selloff or a rally. Moves should be contained within the range of 1170 to 1230. That is how I am playing the next few days.
I think there will be no new QE, as such. But something else may be announced.
Right now there is no political cover -- an agreed and credible deficit reduction plan -- from Congress. Without that, and given that its primary mandate is to protect the value of the dollar, the Fed cannot do QE-3 right now.
Simple as that.
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