Now the time is 3.19am in the morning. Currently after hitting 5 years high of 13354, Dow still has difficulty closing above 13300 the high resistance. Let us see if it can 2moro. It is a bit tricky these few days with 2 major events coming up. One is the German court decision whether to help Europe. The other is the FOMC meeting on Thu where Ben Bernanke will talk about QE.
2moro I foresee that German will approve any help needed for Europe as I think the chancellor will strangle the judge if he disapproves. I don't think there will be any problems about it.
But my major concern comes on Thursday when Ben speaks. I wonder how he is going to tell us about the expectation of QE. Yes, or no,or maybe yes but later, or maybe no but considering to. Ha, it will be fun to see how he manipulate the market sentiment again.
This time round I am not going to predict whether there is or not. As it is up to the market or Wall street to decide which side of the coin they prefer to hear. Sometimes it is not what Ben says, it is what the market thinks it wants to hear that is important. And this will tell you whether the market is bullish or bearish.
Anyway, I will have my strategy on my trading plan. Gold or Silver ETF is one thing I would watch closely. Next are the banking stocks. In fact banking stocks are the most sensitive to bonds purchase. The recent bullish run in financial sector is because of Europe bonds buying (their QE). Take a look at bank of america BAC, Citigroup C or Goldman Sachs GS, or JP Morgan JPM. All are running madly. Any shortfall in expectation on Ben Bernanke will set these stocks back...
2moro btw is Apple release on its iphone 5. I think yesterday Apple drop in price ($20 plus from high) is good as I think some disapointment about the phone design may have been factored into the price. So let us see how Tim Cooks convince the world about its product! Remember, Tim dont have the charisma as a speaker like Steve Jobs. So far everytime he speaks he disappoints the world. But everytime he disappoints, the stock comes back with a vengence!
Let us see if history repeats itself!