Sunday, October 31, 2010

Expecting Fireworks

It seems apparent that there will be no real price movement in stocks until after some news events this week as far as elections and the FOMC meeting. I really don't see the elections as much of a market moving event unless the Constitution party wins a majority in both houses and in addition Obama decides to step down after it occurs because he can't work with people who are sticklers on the Constitution.

But I could see the FOMC verbiage about QE 2 lead to a significant price reaction. My belief based on technical analysis and sentiment analysis is that the market is set to make a swift retracement of recent gains, and possibly resumption of a longer term "secular bear market." So even if the announcement sounds good, it may get sold at least short-term.

2 comments:

  1. Hey, looking at etf shorts oversold right now = market has been rising, we can correct anytime. For me though I like Bidu (not domestic play) waiting to add on dips as long company's growth still in place, any thoughts >appreciate it.

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  2. I don't have any particular thoughts on BIDU. Obviously it has been strong for a while, but depending on your time frame you may be chasing getting into it now.

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