Hello,
Yesterday, I closed out my last S&P 500 long trade, until I get a signal that we're in a medium to long term bull market again I'll be taking shorts only on the S&P 500; going short on peaks and closing the shorts on dips.
My reasoning is that QE 2 has inflated the stock market as all the newly printed money had to have some where to flow into, and stocks was one of those places. Now that is the end of QE 2 (for now) there is not enough hot air to further inflate the bubble. My own country (Scotland/UK) is suffering from stagflation, inflation is around 4%-5% and there is no real economic growth, I can only hope Scotland becomes independent and we build our own economy, one that is not dependent on casino banking ever increasing personal debt and ever increasing house prices. Casino banking and growing property prices and growing personal debt was, and still is, the UK's economic model of the Labour Party and the Conservatives.
What do you think the effects of the end of US stimulus will be on the FX market? On the one hand less supply should be a boost for the dollar, but if QE 2 is what was stopping reality biting (and the only thing stopping the US economy totally going down the drain) it might not.
Yesterday, I closed out my last S&P 500 long trade, until I get a signal that we're in a medium to long term bull market again I'll be taking shorts only on the S&P 500; going short on peaks and closing the shorts on dips.
My reasoning is that QE 2 has inflated the stock market as all the newly printed money had to have some where to flow into, and stocks was one of those places. Now that is the end of QE 2 (for now) there is not enough hot air to further inflate the bubble. My own country (Scotland/UK) is suffering from stagflation, inflation is around 4%-5% and there is no real economic growth, I can only hope Scotland becomes independent and we build our own economy, one that is not dependent on casino banking ever increasing personal debt and ever increasing house prices. Casino banking and growing property prices and growing personal debt was, and still is, the UK's economic model of the Labour Party and the Conservatives.
What do you think the effects of the end of US stimulus will be on the FX market? On the one hand less supply should be a boost for the dollar, but if QE 2 is what was stopping reality biting (and the only thing stopping the US economy totally going down the drain) it might not.