How many times can we rally on variations of the same news? Apparently endlessly....sell on the news does not compute to algorithms. Today the FOMC minutes confirmed QE2 is a done deal in so many words. The market was shocked...shocked I tell you! and rallied from negative to well in the green. Because no one had anticipated QE2 in the preceding 130 SP points the past 6 weeks....
Anyhow now I see how the bulls view the mkt and I wonder why I stress. When downside is limited to a few hrs and dollar strength is to be mocked as temporary you only need to worry if each day will be a big rally...a small rally...or basing sideways action. I love the no lose market.
For completely technical reasons I bought a 2% stake in commercial real estate broker CB Richard Ellis (CBG). The stock has been basing for 5 weeks and I was waiting for a break over $19 which the 'surprising' FOMC minutes served to create ...the stock surged into the close as QE2 will fill America with new tenants in our malls and office buildings.
I will edit with chart later...
Anyyhow earnings season begins for real tonight with Intel...remember if the news is bad we buy as that means QE...if the news is good we buy because it is good...and QE. Although we buy everything on QE we can still run the market up each time QE is hinted because apparently it is still a surprise. All dips are just Kmart blue light specials letting us in at super prices before Ben inflates them higher. Lucky us.
As an aside as I buy no risk stocks I have been selling off my no risk call options on SPY as a replacement strategy. Although if I were competent I would of course not sell SPY calls because the market can only go up. Tough to break old habits when risk was part of the market.
Long CB Richard Ellis in fund; no personal position
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows