Why QE3 Isn't Coming
Everyone wants to know why this market keeps going up. Buying stocks on weakness has been working -- when you can find weakness. While the market is due for a pullback, Monday's late-day reversal was typical of the market's recent bullish price action.
The big question is whether the market going up in anticipation of a third round of quantitative easing, or because an economic recovery on its way. I'm leaning toward the latter. Perhaps a clue can be found in the comparison chart of oil and gold below; there is a clear divergence occurring over the past two days, with SPDR Gold Shares (GLD) (gold line) selling off while United States Oil (USO) (black line) remains firm. If the anticipation of additional easing were a driving force behind this market, that divergence shouldn't occur....324 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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