Dear Friends,
Yesterday, there is again anticipation in Wallstreet of QE3 package in the FED minutes at 2am Singapore time. But after FED did not give any hints on any stimulus, the stocks tumbled down. Within 30 minutes, the DOW dropped 90 points on the dissapointment.
I saw Apple, one of my favorite companies swiftly dropped $8. There were many other stocks that swiftly dropped too.
However, I am glad to say that DOW recovered all of the 90 points drop for the rest of the day, which is 1.5 hours before closing 40 points down. Apple came back strong to close above $600, recovers the early $8 loss, which is a good sign.
How I interpret the whole incident is that following the report, the market indeed sell on the news of dissapointment. But market became rational again and buy it up. I suppose this is how this month market might play out. Anticipation and Dissapointment. Then Anticipation and perhaps dissapointment again. But with each dissapointment, our expectations of QE3 drops.
Currently I would say, perhaps the market is less forward looking to QE3.
Btw, US market has been falling for 5 consecutive days now. I do expect these couple of days to recover a bit of the losses. Let us watch to see when US recovers. I am looking forward to a triple digit gain for a revival of confidence.
Rgds
Daniel
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