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As the world awaits the announcement of the German constitutional court regarding the legality of the ESM mechanism, on this side of the Atlantic the focus remains squarely on the Fed as its holds it monthly FOMC meeting which concludes on Thursday.
Boris Schlossberg
Presented by Gareth Soloway September 05, 2012 11:45AM
Every day now, the markets are hearing a rumor that the ECB will announce a bond buying program or the Federal Reserve is going to announce QE3 at their next meeting. While intra day moves to the upside occur off these rumors, it does not have the holding power. This is a great example of the bankers who cried wolf. The markets have moved higher on speculation and are so used to hearing it, there is little upside left even if it is actually announced. Essentially, the ECB and Federal Reserve are out of bullets.
The lack of upside on these rumors is a very big negative for the market. In addition, additional easing is going to push up commodities even further. With oil hovering around $100.00, there is little they can do without truly hurting the middle class dramatically and pushing the economic growth lower. China is also emerging as a large problem for the global economy. It is looking more and more like a deep recession is hitting them.
The current market picture is bleak no matter how much Ben Bernanke or the ECB try to intervene. I have slowly accumulated a short position on this market.
The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at up slightly on the day, along with the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). Goldman Sachs Group, Inc. (NYSE:GS) is leading the charge, trading at $109.19, +2.78 (2.61%). Apple Inc. NASDAQ:AAPL) on the other hand, is trading lower at $673.45, -1.52 (-0.23%).
Take the seven day free trial to the Research Center and Intra Day Stock Chat. Join the elite pros and get daily videos, swing trade alerts, market reports and more. Learn the secrets that make millions in profit. Join the pros to become a pro.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
The lack of upside on these rumors is a very big negative for the market. In addition, additional easing is going to push up commodities even further. With oil hovering around $100.00, there is little they can do without truly hurting the middle class dramatically and pushing the economic growth lower. China is also emerging as a large problem for the global economy. It is looking more and more like a deep recession is hitting them.
The current market picture is bleak no matter how much Ben Bernanke or the ECB try to intervene. I have slowly accumulated a short position on this market.
The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at up slightly on the day, along with the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). Goldman Sachs Group, Inc. (NYSE:GS) is leading the charge, trading at $109.19, +2.78 (2.61%). Apple Inc. NASDAQ:AAPL) on the other hand, is trading lower at $673.45, -1.52 (-0.23%).
Take the seven day free trial to the Research Center and Intra Day Stock Chat. Join the elite pros and get daily videos, swing trade alerts, market reports and more. Learn the secrets that make millions in profit. Join the pros to become a pro.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
