Thursday, 31 October 2013

The QE continues

Not surprisingly, the FOMC decided to continue QE at $85bn a month, along with ZIRP. There is a likely minor retracement now underway, but it would seem the US - and indeed, world equity indexes will continue broadly higher into spring 2014.

sp'monthly'8 - QE periods.


Another FOMC, where the remaining equity bears were again disappointed (if not disgusted) that the QE fuel of $85bn per month - along with ZIRP, will continue.

*The next FOMC is Wed' Dec'18, and as many recognise, it is extremely unlikely the Fed will change policy during the festive holiday.

So...QE at $85bn into I had feared all along.

Worse, equity bears will be lucky to see even a minor QE taper next year - of around $70bn, by late spring/early summer.

Right now, there looks to be significant QE of $50bn per month..across ALL of 2014..and probably the first half of 2015.

Tesla - in trouble

I'd not normally highlight an individual stock here after hours, but I think this one is worth it.

First, see a great video..which features none other than Mr Bollinger himself! 

My own chart...

TSLA, daily

With the break <$160, I'm guessing TSLA will slip to the 110/100$ zone. That will probably take a few weeks, but earnings are next Monday, and if it disappoints, I'd not be surprised to see a monster 15/20% overnight drop.

Looking ahead

Thursday has two key pieces of econ-data. The usual weekly jobs data, but more importantly, the latest Chicago PMI, market is seeking a non-recessionary reading of 55.0.

*there is no QE tomorrow. The new QE-pomo schedule for November is released at 3pm.

Special note for 'blogger' Webmasters.

It would seem Google has launched a new offensive on the spam-bot URL referrers. So...all the daily web traffic numbers are at least 'moderately' lower for everyone out there! Its a good thing though, the bots do nothing but slow down page loading times.

Happy Halloween :)

Thursday is the end of the month, and indeed...for the old school chartists, it will be very important to see how the monthly cycles close for everything, especially for the equity indexes.

Without question, its been a very bullish month for both US and world equities. I see little reason to see why the current wave won't last for another 4-6 months. I should clarify that such a thought/outlook sure does sicken my stomach, but hell, at least I'm not going to waste my time, effort, and money trying to short it.

Goodnight from London

Market update from Walker

For the macro-economists out there...

A 2 part video update from Gordon T Long..