The FX Market, the Stock Market and the end of QE2
Yesterday, I closed out my last S&P 500 long trade, until I get a signal that we're in a medium to long term bull market again I'll be taking shorts only on the S&P 500; going short on peaks and closing the shorts on dips.
My reasoning is that QE 2 has inflated the stock market as all the newly printed money had to have some where to flow into, and stocks was one of those places. Now that is the end of QE 2 (for now) there is not enough hot air to further inflate the bubble. My own country (Scotland/UK) is suffering from stagflation, inflation is around 4%-5% and there is no real economic growth, I can only hope Scotland becomes independent and we build our own economy, one that is not dependent on casino banking ever increasing personal debt and ever increasing house prices. Casino banking and growing property prices and growing personal debt was, and still is, the UK's economic model of the Labour Party and the Conservatives.
What do you think the effects of the end of US stimulus will be on the FX market? On the one hand less supply should be a boost for the dollar, but if QE 2 is what was stopping reality biting (and the only thing stopping the US economy totally going down the drain) it might not.
OK, the market didn’t collapse at the end of QE 2, but it’s falling like a stone now, QE 3 for the USA and QE 2 for Europe? I think it’s fairly likely, I’ll get back into the stock market if that happens…
Brown offloaded the gold at a 20-year low in the market — now nicknamed the “Brown Bottom” by dealers. The 17 auctions achieved prices for the gold of between $256 and $296 an ounce, with an average of $275.
Todays price ~ $1710
Ed Balls, who was the Schools Secretary, Ed Miliband, then the Climate Change Secretary, and Baroness Vadera, another former minister, were all close aides to the chancellor during the relevant period.
1. Don't blame as all for Gordon.
2. Gold has been a nice trade, here's a system for trading it http://www.forexfactory.com/showthread.php?t=300890
3. Back to the point, is it time for QE2 in Europe and QE3 in the states?
PS. How's the Spanish economy looking, I heard things were pretty dire over there for many? The Euro gave Spain a horrendous property bubble.
© Forex Factory