QE1, QE2 and S&P 500

Start of Quantitative Easing. On Tue November 25, 2008 Federal Reserve announced the purchase of direct obligations of housing-related government-sponsored enterprises. The program included the purchase of up to $100 billion in GSE direct obligations and purchase of up to $500 in MBS. The S&P500 closed at 851.81 on Nov 24, 2008 (the low was…

30 Yr. Yields Testing Lower Channel Limit

30-Yr. Treasuries have been in a long term bull market. Take a look at the monthly chart of $TNX — the 30-Yr T-Bond Yields, which trends opposite of the 30-Yr. T-Bond prices. From February 1994 to June 2003 it was in a steep downward trend with rates fluctuating within a downward sloping channel of 160…

US $ – Does it Look Like it is Going to Rally?

US dollar has been a good indicator of risk-off/risk-on trade for quite some time. Whenever investors become unsure of the economic conditions and when the fear level increases they flock towards US treasuries and US dollar. In the currency domain, Swiss Franc and Japanese Yen trump dollar’s safe haven status and they normally go up…

Market Correction

The bad economic news coupled with the downgrade of USA’s AAA rating to AA+ by Standard & Poors have contributed to the worst August start ever. In the first six trading days in August the S&P 500 saw a drop of -13.37% — from the July close of 1292.28 to August 8th close of 1119.46.…

General Terms – Investing, Trading, Finance And What Not?

A Abenomics Abenomics (a portmanteau of Abe and economics) refers to the economic policies advocated by Shinz┼Ź Abe, the Prime Minister of Japan. Abenomics is meant to resolve Japan’s macroeconomic problems. It consists of monetary policy, fiscal policy, and economic growth strategies to encourage private investment. The detailed policies includes inflation targeting at a 2%…