For a while this morning things looked shaky, but the focus then shifted to the Fed’s first buys under its new QE2 program. The initial buys are a bit bigger than expected (105 billion vs 32 billion previously) and the anticipation was enough to turn the tide. Looks like POMO pump all the time until the next schedule announcement on December 9th. Uncle Ben is doing his best to guarantee a happy Thanksgiving holiday.
Many traders would like a less manipulated market, but there isn’t much we can do about it. The bears’ best chance may be tomorrow (no POMO support). I also find it unsettling watching the protests in London on CNBC this morning. Will that happen soon in USA? Cisco earnings are out, and the stock is being punished. The numbers are ok, but expectations were probably very high considering the modest outlook and a decelerating capital spending comment. It may assert some pressure on technology stocks tomorrow until new POMO money hit Friday and mutual fund Monday.
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