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.
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| Fed action moved dow to 5 year high, 504 point in 6 trading and closer to bubble. |
| Session | Time | Currency | Event | Impact | Actual | Forecast | Prev. | |||
|---|---|---|---|---|---|---|---|---|---|---|
| 0:30 | JPY | Capacity Utilisation | low | 0.5 | -2.3 | |||||
| 0:30 | JPY | Industrial production (Final) | med | -1 | -1.2 | |||||
| 0:30 | JPY | Industrial Production (Final) | low | -0.8 | -1 | |||||
| 2:15 | USD | Under Secretary for Domestic Finance Miller speaks at American banker conference | low | |||||||
| 5:00 | EUR | Employment | low | -0.2 | ||||||
| 5:00 | EUR | HICP (Final) | med | 0.4 | -0.5 | |||||
| 5:00 | EUR | HICP - Core (Final) | med | 1.7 | 1.7 | |||||
| 5:00 | EUR | HICP | med | 2.6 | 2.6 | |||||
| 8:30 | USD | Retail Sales (ex Auto) | high | 0.7 | 0.8 | |||||
| 8:30 | USD | Retail Sales | high | 0.8 | 0.8 | |||||
| 8:30 | CAD | Manufacturing sales | low | 0.5 | -0.4 | |||||
| 8:30 | USD | CPI | high | 0.6 | ||||||
| 8:30 | USD | CPI (ex Food & Energy) | med | 0.2 | 0.1 | |||||
| 9:15 | USD | Industrial production | med | -0.1 | 0.6 | |||||
| 9:15 | USD | Capacity utilisation | med | 79.2 | 79.3 | |||||
| 9:55 | USD | Univ of Mich Sent. (Prelim.) | med | 74 | 74.3 | |||||
| 10:00 | USD | Business inventories | med | 0.3 | 0.1 | |||||
| 13:00 | USD | Fed's Lockart to give opening remarks at employment conference "Employment Consequences of the Great Recession" | low | |||||||
| 13:45 | USD | Fed's Raskin speaks on "Exploring the Link Between Civil Engagement and Employment" before 67th Annual Conference on Citizenship | low | |||||||
| 14:00 | IMF's Lipton and Blanchard give speak at conference on "Financial Crises: Causes, Consequences and Policy Responses" | low | ||||||||
| 20:00 | EUR | Eurogroup Meeting | low | |||||||
