Top alert for 2014: MYGN (50%), LIVE (45%), CTIC (115%), KOOL (88%), PZG (32%), GOLD (6%), IOC (6%), RSOL(18%), PLUG (70%), IMMU (26%)

Sunday, April 29, 2012

Back to QE3 or No QE3

This is what happened to QE1, QE2 and Twist
Last couple of week US economic data are coming really bad. But stock market is rallying up on the hope of further QE3 from Fed. One thing I fail to understand, inspite of injecting trillions of dollar into economy or stock market, along with 0% interest rate for past 3 year, fed have been able to get a growth of 2.2%. Thanks to US consumer spending habit, economy is looking better and it was able to save US from recession. Neither QE1 or QE2 worked, so can QE3 work by injecting another trillion of dollar into economy ? Companies are preferring to buy back billion of dollar worth share and raising dividend instead of hiring or cutting job or by reducing pay scale. Anyways it's reality we all have to face it.

ECB is once again printing money on Tuesday as per fine tuning operation. 99% of the time stock market have rallied on that day or atleast it has provided cushion for any big negative news which could lead to major sell off.  Check out ad hoc communication and look for tender date. Stock is higher on tender date. For more info check out my previous post

Eventhough economic data doesn't matter anymore. Below are important data coming out. The question will whether its QE3 or No QE3 as will be promoted by CNBS.

Personal Income and Outlays (Expectation of personal income is 0.3%, previous month was 0.2%; Consumer spending expectation is 0.4%, previous month was 0.8%) 8:30 AM ET (Gold and Silver will be active, so watch out GLL, AGQ, GLD, IAU, ZSL)

Chicago PMI (Expectation 60.8%, previous month was 62.2%) 9:45 AM ET

Dallas Fed Mfg Survey (10:30 AM ET)

Farm Prices (3:00 PM ET) Stocks of POT, MOS, CF will have effect.

Earnings before market open: HUM, LDK,L, NYX, NSP, SOHU, WPI 

Earnings after hours: ADVS, ARRY, APC,FST, JEC, KAMN,  VECO, SFLY

You should check out proven beaten stocks after earning on very small miss. Stocks such as SNDK, RVBD, INFY, AET have recovered almost 5-10% in very short period of time

No comments:

Post a Comment