Remember on 8-Sep I said this:- “…….given the way on how Ben Bernanke
handle the stock market, I believe the
first round of tapering will kick off before Ben Bernanke step down/retire. The questions is how much will be push out
for the first round of tapering. If the
numbers is minor, lesser than economists predicted, market may move up instead
of going down. However, a major
adjustment will cause the market to tumble.
Having say that, Bernanke
wouldn’t want to become 历史罪人…….”
Economists, analysts………made use of this tapering, pushing the market high and low. That’s the reason why I kept saying “prepare to ride on roller coaster”.
I kept saying to watch out 17 to 18 December, the last FOMC meeting under the leadership of Ben Bernanke. And finally Wednesday18-Dec, we saw the announced by Federal Reserve that it would start to taper its aggressive bond-buying program to $75 billion a month beginning January.
Treasury bond purchases to $40 billion and mortgage-backed securities to $35 billion a month, both reductions of $5 billion. Fed also stressed that this doesn’t mean interest rates will rise. Ben Bernanke even said that he consulted closely on the decision with incoming Fed chief’s Janet Yellen.” And “She fully supports what we did today.”
Immediately after the announcement, gold dropped by $20 and went below $1,200. US 10 years Treasury went above 2.9%. DOW and S&P broke another record high. So what next? Will DOW reaches 20,000 as some of the economists and analysts predicted?
Remember I mentioned about gold when it fluctuated between the ranges of 1300 to 1400. I said that gold has not bottom yet. What about now at 1196, already bottom? My answer is still the same “no”, there is room for gold price to go down further.
Those who are buying/holding REITs, watch closely on this 10 years US Treasury. These two are like a see saw. One sitting on this end and the other sitting on the other end. If Treasury broke 3.5%, it won’t be good for stock market as well.
DOW to reach 20,000. As I mentioned previously, I am not convince with this number. Bases on my calculation, the resistant level for DOW is 16,400. If it break 16,400 the next level that I will be looking at is 16,800. Base on TA, DOW has formed an Opera House.
6.5-percent unemployment and 2.5 percent inflation rate before implementing a hundred percent exit for its $85-billion-a-month bond-buying program. How will Janet Yellen going to handle the tapering. Will she follows this guideline which was previously set by FED.
Tapering kicks off with only $10B and we see Gold drop, Treasury up, USD up, numbers of ASIA countries encounter a significant drop in their currencies, fund started to move………….the game has just started. It is going to be interesting. Once again, today equities market is mend for trade. And next year 小心，小心，再小心。
Economists, analysts………made use of this tapering, pushing the market high and low. That’s the reason why I kept saying “prepare to ride on roller coaster”.
I kept saying to watch out 17 to 18 December, the last FOMC meeting under the leadership of Ben Bernanke. And finally Wednesday18-Dec, we saw the announced by Federal Reserve that it would start to taper its aggressive bond-buying program to $75 billion a month beginning January.
Treasury bond purchases to $40 billion and mortgage-backed securities to $35 billion a month, both reductions of $5 billion. Fed also stressed that this doesn’t mean interest rates will rise. Ben Bernanke even said that he consulted closely on the decision with incoming Fed chief’s Janet Yellen.” And “She fully supports what we did today.”
Immediately after the announcement, gold dropped by $20 and went below $1,200. US 10 years Treasury went above 2.9%. DOW and S&P broke another record high. So what next? Will DOW reaches 20,000 as some of the economists and analysts predicted?
Remember I mentioned about gold when it fluctuated between the ranges of 1300 to 1400. I said that gold has not bottom yet. What about now at 1196, already bottom? My answer is still the same “no”, there is room for gold price to go down further.
Those who are buying/holding REITs, watch closely on this 10 years US Treasury. These two are like a see saw. One sitting on this end and the other sitting on the other end. If Treasury broke 3.5%, it won’t be good for stock market as well.
DOW to reach 20,000. As I mentioned previously, I am not convince with this number. Bases on my calculation, the resistant level for DOW is 16,400. If it break 16,400 the next level that I will be looking at is 16,800. Base on TA, DOW has formed an Opera House.
6.5-percent unemployment and 2.5 percent inflation rate before implementing a hundred percent exit for its $85-billion-a-month bond-buying program. How will Janet Yellen going to handle the tapering. Will she follows this guideline which was previously set by FED.
Tapering kicks off with only $10B and we see Gold drop, Treasury up, USD up, numbers of ASIA countries encounter a significant drop in their currencies, fund started to move………….the game has just started. It is going to be interesting. Once again, today equities market is mend for trade. And next year 小心，小心，再小心。
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