Yesterday it was determined that the Fed would pump another 600billion or so into the economy. The immediate result was an intraday whipsaw, the likes of which I have never seen before. In the end it was good enough for a breakout, and today futures are up strongly ahead of the open. Do your best to make some money, because these actions are highly inflationary, and you can expect to be paying significantly more for pretty much everything going forward. It won’t be long before congress votes to make the Bush tax cuts permanent. Soon after that, we can begin talking about the size and scope of QE3.
UUP – dollar index..$22 has been key support in the past, this is a weekly chart.. right now it’s trading below that price, and if it doesn’t bounce here, I have no idea where support is
OIL – crude oil has broken out.. another 10% move up from here seems like a slam dunk
TLT – bonds sold hard on the news yesterday and formed a high volume bearish engulfer.. PIMCO’s Bill Gross is probably right, it’s all ovah for bonds.. somebody turn out the lights
As for individual stocks, at this point you can pretty much throw a dart and pick anything..
AATI – semiconductor.. this one looks as good as any, watch for leadership via SMH