Since QE2 (Quantative Easing 2) was announced on November 3, 2010 we have had something for everyone.
Bulls Roar (Bullish Investors are positive on markets):
Immediately after the QE2 comments from the FED a short covering rally ensued pushing indexes up near their highs for the year and extended positive market expectations beyond immediate possibilities (Investor Sentiment Readings became too positive in our opinion.)
Bears Out of Hibernation (Bearish Investors are negative on markets):
After a few days QE2 review by analysts, bears came out of hibernation and began pushing interest rates higher (bonds lower) on possible inflation anticipation. For the record we think this is unjustified AT THIS POINT, but only time will tell. With investor expectations tilting too strong toward a positive direction, no one was left to jump from a negative to positive stance, and Bears have had their way with capital markets as of late.
Turkey’s In Hiding (Turkey’s Main focus is avoiding the dinner table in two days, not very concerned with markets):
As the Thanksgiving Holiday nears, maybe we can take heed from the
Turkey’s if only for a day or two; Forget about the markets and other complicated stuff, and focus on the dinner table with our friends and loved ones.
Happy Thanksgiving and of course, Have a Great Few Days!
JK