Daily S&P 500 INDEX TRACKER

[ananda77]

Trader Update -data point 02 November 2010-

...while institutions selling action is 'on hold' and RSI_30 still sits above the historically significant danger level '5'

the SPX 500 managed another rally, but so far unable to make it to the October 25 High *1196

...as a result, the market displays potential to move into the weekly 3-month resistance current *1214 and the April 2010 High *1220 (+) range

…failure in the range like in August 2008_May 2010_Month End October (??)

would target the October 12 Low *1156 as an initial, minimum down-target and a Close below the *1156 target confirms a potential double top

...on the flipside, a confirmed break-out, as outlined in the chart

would be bullish with a SPX 500 *1380 (+) as a minimum target

Kind Regards

[ananda77]

Stocktiming.com -data point 03 November 2010-

…institutional core holding

-close above RS indicating bullish bias-

...Fed and Foreign Long term liquidity inflows

-break to upside-

...as a result, the SPX 500 displays potential to move into the daily 3-month upper resistance channel current *1250

...on the flipside, the VIX and the NYSE DVOL

...out of equilibrium, indicating significant downside potential, IF liquidity inflows compromised (possibly a Fed announcement below 500B)

Kind Regards

[peat]

the Committee intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.

[ananda77]

Stocktiming.com -data point 03 November 2010-

…institutional core holding

-close above RS indicating bullish bias-

...Fed and Foreign Long term liquidity inflows

-break to upside-

...as a result, the SPX 500 displays potential to move into the daily 3-month upper resistance channel current *1250

...on the flipside, the VIX and the NYSE DVOL

...out of equilibrium, indicating significant downside potential, IF liquidity inflows compromised (possibly a Fed announcement below 500B)



Trader Update -data point 03 November 2010-

...the SPX 500 followed the classic sell-the-fact pattern after the Fed announcement but down ticks so far appear mild without causing too mauch damage; as a matter of fact

Conclusions:
From a statistical and historical point of view, a lower open or any weakness ( but don’t bet on much downside potential – if any – ) during the first hour of the session will probably provide a short-term (intraday) buying opportunity targeting a higher price immediately before 2:15 p.m. (bulls will probably be grinding their way higher)

...so here we go, the market displays potential to move into the weekly 3-month resistance current *1214 and the April 2010 High *1220 (+) range as the next likely upside targets and
both scenarios below remain possible and could play out successively

…failure in the range like in August 2008_May 2010_Current (??)

would target the October 12 Low *1156 as an initial, minimum down-target and a Close below the *1156 target confirms a potential double top

...on the flipside, a confirmed break-out, as outlined in the chart

would be bullish with a SPX 500 *1380 (+) as a minimum target

Kind Regards

[peat]

from zerohedge...

After USTs, the deranged madman will buy MBS, then ETFs, then stocks, then Plasma TVs, then hookers, then lapdances, then toenail clippers, then toilet paper, then the most worthless thing of it all- dollars themselves, and then, finally, it will be all over.

[ananda77]

from zerohedge...After USTs, the deranged madman will buy MBS, then ETFs, then stocks, then Plasma TVs, then hookers, then lapdances, then toenail clippers, then toilet paper, then the most worthless thing of it all- dollars themselves, and then, finally, it will be all over.

ZEITGEIST: ANSWERS TO WHY ? (missing it is your problem) http://vimeo.com/13770061

Kind Regards

[ananda77]

Trader Update -data point 04 November 2010-

...the SPX 500 surged higher after yesterdays FOMC decision and appears ready to take out the April 2010 High *1220

...the imminent break-out above *1220 would set the market up to continue higher into the daily 3-month upper channel resistance current *1256 with potential to touch on the weekly 1-year lower channel resistance current *1298

…failing the *1220 High like in August 2008_May 2010_Current (??)

would target the October 12 Low *1156 as an initial, minimum down-target and a Close below the *1156 target confirms a potential double top

...on the flipside, a confirmed break-out, as outlined in the chart

would be bullish with a SPX 500 *1380 (+) as target

Kind Regards

[ananda77]

The QE policy has me stumped as to exactly what purpose it serves the american economy.

...the ONLY real purpose of QE 1,2,3,4,5,6,7....is to force already over the moon debt levels up further to keep the present monetary system functioning, e.g to avoid contraction; without QE, the whole monetary system goes down the drain

-the counterfitters are busy at work- (and here in NZ, people like Don Brash, John Key and their political cohorts are busy proposing the same policies) -get rid of them -the whole bloody lot-

...and keep yourself debt free

-

Kind regards

[Hoop]

The QE policy has me stumped as to exactly what purpose it serves the american economy. .....

Quick answer...to try to create inflation to prevent deflation....(by inference it seems the FED now sees possible deflation as a huge threat)

Deflation expectations/fears stop companies borrowing money to expand and grow thereby stalling the economy. This leads to recession or depression scenarios. QE is put into effect when the other basic forms of economic stimuli fail .e.g lowering interest rates, tax rebates etc.

QE is often seen when the official interest rate hits 0% and can go down no further.

Expect QE to keep happening until the economy kick starts....

[ananda77]

David Rosenberg:

U.S. FEDERAL RESERVE — QE2 THOUGHTS

There was nothing in the Fed press release yesterday that was really surprising. In fact, the market’s initial dramatic reaction (all over the map) was what’s most surprising. The Fed is going to be buying $600 billion of Treasuries (in the 5-10 year part of the curve) through mid-2011 and another $250-300 billion via coupon reinvestments, which they were going to do anyway.

The “number” that was key for the markets is that $600 billion figure, which is about $75 billion per month. That is in the middle of consensus expectations of $50-100 billion. Not “shock and awe”, based on what was broadly expected, but not “light” either considering that the economy, at least so far, has managed to avoid double-dipping.

For all the excitement, this further expansion of the Fed’s balance sheet will add between 0.25-0.5% to real GDP growth; however, this will take the size of the Fed’s balance sheet to a Japanese-style 20% of GDP!

What the Fed is clearly trying to do is reflate asset values in order to generate a more positive wealth effect on personal spending and pull the cost of debt and equity capital down in order to re-ignite business “animal spirits” and hence corporate investment and hiring. In a balance sheet or deleveraging cycle, success is not always guaranteed even by the most aggressive of monetary policies.

Through its actions, the Fed creates excess reserves in the banking system. But with one-third of the household sector gripped with a sub-620 FICO score, 1-in-7 mortgage debtors are either in arrears or in the foreclosure process, and with an estimated 25% of homeowners “upside down” in their mortgage (negative equity), there is at least some non-trivial probability that, as was the case with QE1, there will be no visible impact on the willingness to borrow, the money multiplier or velocity, which is what we would need to see to declare this radical policy experiment a success.