Home > Uncategorized > 2012/09/21: Quick Post: Courtesy Brief Update: ‘Buzz Lightyear’ Bernanke

2012/09/21: Quick Post: Courtesy Brief Update: ‘Buzz Lightyear’ Bernanke

© 2012 ROHR International, Inc. All International rights reserved.

Short & Sweet again on the specific market comments in this post, because yesterday’s TrendView Brief Update is a pointed discussion of the most important trend implications of the seemingly ever-expanding quantitative easing efforts. From a technical trend perspective there is the very orderly and limited correction of the December S&P 500 future after last week’s explosive, QE-driven rally.

In light of the negative balance in the economic data this week (especially out of Europe and China), it is surely the confidence in the volume (if not the net effectiveness) of quantitative easing efforts that helps to underpin the equities rally. Other central banks either joined the party (Bank of Japan on Wednesday) or reaffirmed their commitment to monetary largesse this week. Of course, all that is occurring under the cover of leading ‘easy money’ guru Ben Bernanke, who is nothing less than the ‘Buzz Lightyear’ of quantitative easing: “To infinity and beyond.”

And for now he seems to have carried the day in spite of the relatively limited potential for rewards and significant risks accompanying this highly aggressive further liquidity expansion policy. We will have much more for you on that from highly respected sources early next week. But in the meantime…

 

 

…the most important aspect is the degree to which the December S&P 500 future managed to hold the bottom of the four day selloff yesterday morning at a critical support. It traded at no worse than the top end of major violated 1,440-45 resistance (now prominent short-term support.)

And as the intermarket relationships between the various asset classes are back to classical tendencies at present, that drives the trend perspective on everything else from primary government bond markets through foreign exchange into commodities, metals and energy.

That is the reason why yesterday’s analysis was indeed so brief. As it notes, much of everything else which has transpired this week is very consistent with the equities trend activity as spelled out in our assessment from Tuesday evening’s Weekly Report & Event Summary Perspective and the Current Rohr Technical Projections Key Levels & Select Comments that were also updated at Tuesday’s US Close. Both are available through links in the right-hand column.

Also consider reviewing our Wednesday post US solutions after election? NOT Likely!! which includes our letter in the FT on the US political scene (in case you missed it previous.)

Enjoy the read, and have a great weekend.

Thanks for your interest.

 

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