Thursday, September 13, 2012

Fed Pushes The Market Higher

Mr Market needed a kick in the butt to get going again and about everyone and his dog was waiting for the FOMC-minutes today. In short, there will be more QE and buyers came in large.

This QE3 made major indices close higher between 1.3% and 1.5%. Besides a slight pullback in late afternoon, the only way was up after the Fed-announcement.

On a longer term level, major indices are making multi-year highs. The only exception are small caps, but they aren't far off. The market is ready now to attack the 2007-2008 highs. Tech is already far beyond that point!

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Quite a move by gold and especially silver on the FOMC-announcement, up respectively 2% and 4.3%. Copper was up >1%.
The euro also ripped higher, coming very close to 1.30, which was important support from February through April of this year. Will it turn to resistance here?
Oil went down hard on FOMC, but recovered most of the losses soon afterwards. Still up +1%.

No comments:

Post a Comment