Yesterday's Ben's announcement to buy Mortgage back securities stopped out my short position for a very small loss. I believe in hard stops and it saved me from a disaster. I did not think Ben had anything left with Treasury bond buying based on JP Morgan stats on how much leverage Ben had with Treasuries after 2 QEs, cause there wasn't much he could buy. Hence my reason for the short before the announcement. However, voila, he pulls a trick out of the hat with an announcement to buy Mortgage bonds instead. Ben is clearly running outside of his Fed charter for monetary policy and the stability of the dollar.
Today we put in a new high and QE3 is on a hyper drive and causing the dollar to tank. Any pull back next week will likely bounce. 4hr SPX chart shows a conversion price of 1452. 1440 is now the major support line.
$NYMO sentiment is at 100% for 2 straight days. So some type of pull back is due. So I'm scalping short through Monday.
VIX Sentiment is showing 100% also.
Russell 2000 Advance and Decline daily chart. Near resistance after breaking out of descending wedge in mid August. The VIX sentiment above also confirmed it.
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