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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
please read my full Disclaimer at this link.


...If the dots don't connect, gather more dots until they do...


U.S. Government Shutdown Ends...Temporarily


* Wed. Jan. 31 @ 2:00 pm ET ~ FOMC Announcement
* Fri. Feb. 2 @ 8:30 am ET ~ Employment Data
* Mon. Feb. 19 ~ U.S. markets closed for Presidents Day Holiday
* Wed. Feb. 21 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Wed. Mar. 7 @ 2:00 pm ET ~ Beige Book Report
* Tues. March 20 ~ 2-day FOMC Meeting Begins
* Wed. March 21 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts + @ 2:30 pm ET ~ Fed Chair Press Conference
*** Click here for link to Economic Calendars for all upcoming events

Tuesday, September 11, 2012

Stimulus...The Lifeline for Q3 & Q4 2012

Here's an argument in favour of the Fed providing additional monetary stimulus (new money printing) at their meeting this Thursday...this is purely unbiased...I'm not in favour of or against further stimulus.

The following two graphs show total percentages gained to date for 2012 (includes September 11th closing data) for the six Major Indices and the nine Major Sectors.

The next two graphs show percentages gained/lost for only Q1 of 2012.

The next two graphs show percentages gained/lost for only Q2 of 2012.

The next two graphs show percentages gained/lost for only Q3 of 2012...of course Q3 is not finished until the end of this month.

If you're  a fund manager who bought at the beginning of the year, sold at the worst levels of Q2 and have not participated in the Q3 rally, so far, your fund is underperforming miserably. You're going to be praying for the Fed to provide additional monetary stimulus at this next meeting so that you can jump in with both feet and buy at inflated price levels and hope that everyone else does, too...otherwise, you're probably preparing for chaos.

Accurate take on things? Only fund managers in that position can answer that, especially after Thursday. We'll all see the market's reaction for ourselves over the next days/weeks ahead.