Thursday, September 13, 2012

Yeah! We love counterfeiting!

In the past couple of weeks both the European Central Bank and our own Federal Reserve Bank have announced plans to create money out of thin air for buying bonds and mortgages in order to stave off further economic contraction. The stock market jumped after the ECB announcement, but then quickly leveled off and resumed a new flat level.

We got another jump today after the Fed announcement - let's see how long this lasts.

Friday, September 07, 2012

Oops! Is the Dow the Dominant Descriminator This Time?

Yes, the S&P 500 index closed at a multi-year high yesterday, but for once I think I should have been watching the Dow Jones Industrial Average instead.

The Dow has bumped into an overhead resistance line that's been tested several times as far back as March. If the Dow breaks through, then there will be no more trend-line arguments against a new rally.