The qe3 announcement came out today. The Federal Reserve managed to surprise a well-primed Wall Street with aggressive commitments with his qe3 announcement to ease until the economy shows signs of healing.
As expected, the Fed announced a new version of quantitative easing and extended its low-rate policy to mid-2015, but it also took the unusual steps of promising to continue mortgage and other asset purchases if it does not see significant improvement in the labor market.
They want us to think qe3 WILL WORK, when qe1 and qe2 did not!!!!! That is quite comical I must say. But my opinion does not really matter right here and now....
As you can see the market skyrocketed on the qe3 announcement when it hit the news wires. A VERY huge buy program hit the markets and up we went. We also took out the MAY 2008 highs I have been talking about in the blog here for the last few days.
Now the market....
1) Yesterday I did warn that the market was in a bullish flag pattern, and that is exactly what played out. That would have given you a heads up that the FED news was going to be positive today, and it would have given you a BIG HEADS UP.
2) We have broken 2008 highs and 2012 highs also. That is quite significant.
3) The most important part of today, is that we have been in a bullish channel since JUNE 2012. Today we are back up on that channel resistance as you can see on the charts.
I have talked with my VIP MEMBERS HERE who get all my juicy stuff, and I told them as long as the fed keep printing money it's gunna be hard to 'sell' this beast for now. That is all I can say. :-)
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