Lady Market and Intangibles – October 27, 2011

[EB]

I fully agree with Joe Fahmy and, yes, I think we are back in a pseudo-POMO regime which is maybe the most powerful one we’ve seen because Europe is now engaged too in a massive QE program on its own, coordinated with Japan and the BRICs. It will be hard to fight a planetary Fed no matter how insane their program for the long term (paying debt with more debt).
Billy

Indeed, this looks like panic buying. 126.71 opened the year and fund managers want to close with what they perceive to be a central bank facilitated bang. One caveat is that, since the equities top, a gap open near daily R3 has been a sell signal. Conversely, if today's gains hold in the coming days, it could be a major risk-on indication.