Market Breaks Out

Today's market rally gives very positive responce to ECB's bond purchasing plan, and it finally clears out prior's high. It recoups all the loss of the short-term pull back since Aug 21st. If tomorrow's non-farm payroll and next week's FOMC do not turn out to give us disappoiting results, the market should keep the uptrend for at least another week until the stochastic reaches 90. Today's reading is merely 59. So, it still has enough upside potention. Hold up your long positions until you see either stochastic surges to 90 or terrible news come out.

Likelyhood of QE3, QE3 possibility

Are we really going to have QE3 from next week's FOMC? Chances are, we may have some sorts of economic stimulates from federal reserve in the near future, and that is what the market is currently betting on. We do need a new wave of stimulates to further strengthen our economy and to drive unemployment rate down further. President Obama fights to keep and create more jobs here in the United States.


Can QE3 Really Help the Market?

I always doubt on this. Buy rumor and sell fact is what the market always does. At this price level, even though QE3 comes out, it will not drive market crazy and start a bull market. Instead, the market will more than likely to rally for a day or two to show a postive response then consolidate, and then starts a real correction waves. The worse case is, if there are not many people participate after the announcement of new QE3, the market will open high and close at its daily low in the following day. Then, it starts correction waves right away.

If you don't have any long position yet but still want to ride on this wave of rally, buy your stocks or Index ASAP. Be prepare to liquidate your positions once the direction goes wrong. It's a little risky to rise positions at this level but you may get some quick and nice return in the short term. Do not fight the market. Do not short.