Well that was fun. Change has yet to take place in anything market related yet. I am watching only one thing, basically, and that’s the US Dollar. Lots of shaking out today but in the end, we still got a definitive close below 77.
Minyanville had a great point today noting that although we’re talking about 600 billion in QE2 (light by some estimates), there is also 300 billion yet to be spent from QE1. All told, there is a potential for nearly $1 trillion in QE going into 2011. Think the dollar will catch a bid on that easing? I doubt it.
The cycle still suggests that /DX will get down to 73 before year’s end. It may not go in a straight line, but you can see using pivots where support and resistance lie.
Gold and silver got everyone nervous today, but I can’t think of anywhere else I’d rather be than miners and silver right now. Some great potential unless Friday throws a wrench in the mix……which by the way – the Fed already knows what those numbers are.
Trade safe and trade the extremes!