Jerry Samet
09-14-2012, 12:50 AM
The Fed announced QE3 today and basically said the bond purchases will be open ended. The printing presses are now operating at full speed in both the U. S. and Europe and the market reacted strongly. The major averages were up between 1.3% and 1.7% on the day and volume was much higher across the board. Leading stocks participated in the move but were up a bit less than the overall market. The leaders index was up 1.46% on slightly lower and about average volume. It set a new price high but not an RS high. All the major averages closed near their highs of the day and set new 52 week highs. There was also a Eureka signal to confirm the strength. Much of the new money being printed will find it's way into the financial markets and will drive them higher. It appears the rally has further to go. Jerry