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Thursday, September 13, 2012

What does QE infinity means to average people ?

Fed launched QE infinity. Everyone knows, neither QE1, nor QE2 or Operation twist helped average people but Fed launched another round of extension of extended operation twist and increased Fed balanced by 4.1 trillion dollar. Today fed action is not less then criminal activity. Its only going to raise prices of gas, food, gold and all metal. So don't be surprise if you see $5 at your nearest gas station. Fed action also means more bonus to bank. Bank have been chanting to Fed, "Print baby print" and it got what infinite easing. With average pay and lower wage, and increased gas prices, its only going to make life of average american difficult. With inflation at 1.7% and Fed QE infinity will only increase more inflation in coming day. Today's Fed action only pushed it closer to disaster and one should expect more downgrade for US in coming days. Anyways now that all the news is out, Fed and ECB has done what was in their hand, and hope of easing is already priced in, we should see pullback from next week once option expiration is over.

For tomorrow, Dow and S&P500 is expected to open higher. For bullish sentiment to 13,573 and s&P500 1464 and for bearish sentiment to continue dow needs to break 13,520 and S&P500 needs to break 1448.



dow jones
Fed action moved dow to 5 year high, 504 point in 6 trading and closer to bubble.

SessionTimeCurrencyEventImpactActualForecastPrev.
  0:30JPYCapacity Utilisationlow0.5 -2.3
  0:30JPYIndustrial production (Final)med-1 -1.2
  0:30JPYIndustrial Production (Final)low-0.8 -1
 2:15USDUnder Secretary for Domestic Finance Miller speaks at American banker conferencelow   
   5:00EUREmploymentlow  -0.2
   5:00EURHICP (Final)med 0.4-0.5
   5:00EURHICP - Core (Final)med 1.71.7
   5:00EURHICPmed 2.62.6
  8:30USDRetail Sales (ex Auto)high 0.70.8
  8:30USDRetail Saleshigh 0.80.8
  8:30CADManufacturing saleslow 0.5-0.4
  8:30USDCPIhigh 0.6 
  8:30USDCPI (ex Food & Energy)med 0.20.1
  9:15USDIndustrial productionmed -0.10.6
  9:15USDCapacity utilisationmed 79.279.3
  9:55USDUniv of Mich Sent. (Prelim.)med 7474.3
  10:00USDBusiness inventoriesmed 0.30.1
   13:00USDFed's Lockart to give opening remarks at employment conference "Employment Consequences of the Great Recession"low   
   13:45USDFed's Raskin speaks on "Exploring the Link Between Civil Engagement and Employment" before 67th Annual Conference on Citizenshiplow   
   14:00IMF's Lipton and Blanchard give speak at conference on "Financial Crises: Causes, Consequences and Policy Responses"low   
  20:00EUREurogroup Meetinglow