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Saturday, September 15

QE3, Market Rally, Inflation

With QE3 finally announced with strong conviction, the market is most probably going to rally for the next 3 months.

What we might see in the near term is short covering as market participants renew their bets and buy back short positions so as to limit their downside risk.

As the Dow and S&P have made new highs, short squeeze is inevitable. While some shorts believe that the market should correct downwards, they are also panicking as the many cash in the sidelines are driving demand for risks.

What we should see - 

Market rally,
USD weaken,
Inflations

BUY CYCLICALS and commodities. Short USD.

1 comment:

Trader said...

Visit back please :)

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