This is interesting. Today Fed minutes gives some signs that QE3 might be in the pipeline.
They said there will be a discussion if there is a QE3 in their next FOMC meeting in september.
Now Dow spiked up a bit before consolidating at 2am Singapore time. I think probably this QE3 expectation will grow over the days, nearer the September FOMC meeting in 12th or 13th Sep. Well, now I can't see market drop much given this glimmer of hope.
Probably these few days, there may be more expectation factored into the market, propelling the market forward.
Gold (GLD) or Silver (SLV)is something you may want to look at now...
Let us see how the market reacts these few days.
Somehow I got a feeling that probability of a QE3 is high. I think if Ben Bernanke would not have one, he probably would not give us such a high expectation of one. If not, the market will fall hard in September and it would not help in Obama election which is just 2 months away!
Anyway we just play with the expectation leading up to FED's next meeting. You may want to really take out your guns and pull some trigger to buy good stocks whenever the market drops!