Something Alan Kohler put up the other day has been gnawing at me and it makes sense about this whole sell down.
You know how the media always seems to get it wrong. The way the media works is that "if the market goes down find the biggest story and that must be the reason right"?
Well Kohler put up a graph of Quantitative Easing versus the DJIA and Lo and Behold it matched.
The elephant in the room at the moment is that QE2 ends at the end of the month. That means no more printing money (for now at least) which will support the USD and will act to drive US shares lower.
The market has known QE2 would end for a while now which makes sense when you think of the smooth downward slide since the start of May.
When QE1 was happening the Dow rose - when it stopped the Dow slid - when QE2 started the DOW rose, now it is stopping....
The moral of this little story is that while Greece is interesting it is a sideshow to a dancing elephant and you know what they say about when the elephants play....
- Forums
- ASX - Day Trading
- daytrades june 20 pre-market
daytrades june 20 pre-market, page-8
-
- There are more pages in this discussion • 24 more messages in this thread...
This thread is closed.
You may not reply to this discussion at this time.
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)