• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Joseph Russo

Joseph Russo

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating…

Contact Author

  1. Home
  2. Markets
  3. Other

Technically Speaking: QE3 | Poster-Boy Update

July 13, 2011 10:20pm ET


QE3 | Poster-Boy Update

Today, rumors of QE3 emerged from the release of the Fed-minutes and stocks took off like rockets. In the process, Gold pushed its way to a fresh new high, while the Dollar gave back most all of its recent gains.

Following the press release, Rick Santelli of CNBC described the Stock Market as a poster-boy benchmark measure of a recovering economy.

We suspect he was inferring that the powers-that-be, namely the Fed and Big Government, will go to whatever extremes necessary (QE-99?) to keep stock prices afloat, much like they have attempted to do with home values -yet another poster-boy property of our esteemed academic leaders.

Long before the headline release crossed the news wires stating that Moodys was threatening to downgrade US credit rating, the exuberance surrounding the prospects of QE3 had already begun to wane. After being up over 160-points by 11:00 am, the Dow gave back nearly 120 of those points to close up just 45-points on the day.

As a result of Moodys announcement, after hours futures moved down sharply suggesting that selling pressure will be bearing down upon equities at the open on Thursday.

If they weren't' such a bunch of academic-political blockheads buried deeply in intractable states of collective denial, we'd feel their pain. That they have manic and non-cooperative poster-boys on their hands should give them pause to re-think their cause, but we seriously doubt they will.

S&P500

From our short-term trade setup posted last Friday (and shared on Wednesday), we have highlighted 20-points of downside captured upon tagging the 1315 target.

Over the short-term, it would not surprise us in the least if Thursday's selling pressure morphs into another Friday/Monday rally. Whatever our poster-boy delivers, look for a potential turn-pivot on Monday July 18.


Technically Speaking Video

 

I trust and hope that you have extracted something of actionable value from this edition of Technically Speaking.

Until next time,

Trade Better/Invest Smarter

 


Elliott Wave Technology's Near Term Outlook is for those who demand masterfully consistent and objective technical analysis that visually lays out actionable ideas from which to engage the broad markets over the short and near term. The publication is delivered to institutional and private clients each Monday, Wednesday, and Friday evening.

The Near Term Outlook covers 7 essential broad markets.

US DOLLAR | DOW JONES INDUSTRIALS | S&P-500
NASDAQ-100 | GOLD | CRUDE OIL | BONDS

 

Back to homepage

Leave a comment

Leave a comment