Discuss Market Comments 10/12

Trouble brewing, but the trend is still the bulls' friend - Stocks were up over the past two days, but yesterday's holiday trading saw the lightest volume of the year so it's tough to get a feel for the strength. The Dow gained about 60-points on Friday and Monday, and the indices continue to make multi-month highs.

Market Commentary for 10/12/10

Current Daily Market Commentary

 

[Guest]

When would the QE2 announcement come?

Seems like those of us in the market for most/all of this rally, would be wise to lighten up the day before the announcement in case sell-the-news does occur...

 

[tsptalk]

The next FOMC meeting is Nov 2 and 3. Perhaps then? I guess they are still mulling it around watching the economic data evolve. Not all members of the FOMC are for another QE...

Fed's Hoenig: Economy Does Not Need Additional Support From Fed

"Federal Reserve Bank of Kansas City President Thomas Hoenig said. "There simply is no strong evidence the additional liquidity would be particularly effective in spurring new investment, accelerating consumption, or cushioning or accelerating the deleveraging that is hopefully winding down."

But Hoenig is notorious for going against the grain...

"He has dissented against the majority at every Federal Open Market Committee meeting this year."

 

[tsptalk]

More: Fed signals next move could come soon

"Several members noted that unless the pace of economic recovery strengthened or underlying inflation [rose] ....they would consider it appropriate to take action soon," according to the minutes."