From the Trading Desk
Heading into the week the US market once again watched the Nikkei continue to move further into the stratosphere. Futures were pretty anemic heading into the trading session today. Overnight news focused on the plunge in precious metals as Silver and Gold were hit hard. Despite the negative open and sentiment both precious metals were [...]
The Big Wave Trading Portfolio remains under a BUY signal and currently has zero issues weighing on it presently. On the short-term the market is very extended in price compared to trailing key moving averages. Logic dictates that a natural pullback to some form of support levels (fibonacci, price lows, or a moving average) should [...]
The morning did not get off to a great start with disappointing economic data hitting the market. Weak jobless claims and a Philadelphia Fed manufacturing index showed how disappointing the economy continues to be. By mid-day it appeared the market simply didn’t care too much about the weak economic data. Just as new highs were [...]
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The Day After: Will there be a QE Hangover?
Yesterday’s Federal Reserve announcement of further quantitative easing via monthly purchases of Mortgage Back Securities (MBS) sent stocks higher on big volume. Perhaps those on the sidelines will be forced back into the market, but that remains to be seen. Yesterday’s move wasd done so on very heavy volume suggesting institutions were busy buying up shares a very healthy sign for the market going forward. Our uptrend started back in the summer continues to power forward and we have yet to see signs of it ending any time soon.
Gold and silver along with platinum pushed higher as many commodities have with the decline in the dollar. Since the fed is monetizing mortgage debt they are simply printing money. The end game here is unknown as the Fed’s excuse is a week jobs market. However, the endless printing of the green back will have reprocussions. Higher inflation is a tax on the poor and with lowered purchasing power they will rely more on the government to fill the gap. This endless circle will only get worse until a structural fix is put in place.
Now we have the Federal Reserve and ECB out of the way we still have the ongoing threat of the PIIGS needing more money. The European debt crisis is a downward spiral and until deleveraging is played out fully we’ll continue to see issues from the European nations. Fun times, but for now all we care about is we are in an uptrend!
Have a great weekend.