• 511 days Will The ECB Continue To Hike Rates?
  • 512 days Forbes: Aramco Remains Largest Company In The Middle East
  • 513 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 913 days Could Crypto Overtake Traditional Investment?
  • 918 days Americans Still Quitting Jobs At Record Pace
  • 920 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 923 days Is The Dollar Too Strong?
  • 923 days Big Tech Disappoints Investors on Earnings Calls
  • 924 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 926 days China Is Quietly Trying To Distance Itself From Russia
  • 926 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 930 days Crypto Investors Won Big In 2021
  • 930 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 931 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 933 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 934 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 937 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 938 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 938 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 940 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Low QE2 Volume and Inside Day Point To More Downside

The media likes to imply the Fed is on the verge of cranking up QE3. Here is Reuters take on Wednesday's Fed statement and press conference:

The Federal Reserve is prepared to take further steps to help an economy that is "close to faltering," Fed chairman Ben Bernanke said on Tuesday in his bleakest assessment yet of the fragile U.S. recovery.

While QE-friendly ETFs were lifted with the market's tide on Wednesday, many of them experienced gains on low volume. The table below shows some of the biggest gainers in the wake of QE2, followed by Wednesday's volume and average daily volume. On Wednesday, big institutions were not buying stocks or the idea the Fed is on the verge of QE3.

ETF Volumes

As we mentioned on November 2, the ratio of Treasuries (TLT) to TIPS (TIP) indicates fears of deflation continue to outweigh concerns about imminent inflation, which means the market questions the impact of additional Fed intervention.

An inside day occurs when a market trades within the high and low range of the previous day. The S&P 500 had an inside day on Wednesday. While inside days are not the most reliable signal, they can be followed by a continuation of the previous move. With strong down days on Monday and Tuesday, followed by an inside day, we may see weakness on Thursday.

SPX

The silver ETF (SLV) has yet to recapture its 22-week moving average, which also leans toward deflationary outcomes. More information can be found in this October 20 article.

iShares Silver Trust

 

Back to homepage

Leave a comment

Leave a comment