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inthemoneystock (< 20)

Keys: Stock Market Rally Ahead Of Fed

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June 21, 2011 – Comments (6) | RELATED TICKERS: SPY , UUP , QQQ

The markets are in rally mode today as positive comments from the Federal Reserve tomorrow afternoon are expected. It appears the markets may even be hoping for some QE3 news. Ben Bernanke and the rest of the Federal Reserve are meeting to discuss policy. They will announce it tomorrow. The SPDR S&P 500 ETF (NYSE:SPY) traded as high as $129.55, +1.85 (+1.45%). This was a major gain for a market that has seen seven weeks of selling.  

The Dollar is also taking a large hit today. A down Dollar means a strong up market.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%) This weakness in the Dollar is partially related to possible further easing measures by the Federal Reserve but also an aid package to Greece that may be given as early as tomorrow. The first step tonight is a vote of confidence for the government. Assuming that goes well, new austerity measures will be voted on. The market is anticipating a royal flush of approval. Should something happen, the markets could freak out. It is unlikely but not impossible. 

The rally today is broad based. Financial stocks were weak early but have roared back and are now matching the gains of other stocks. JPMorgan Chase & Co. (NYSE:JPM) is trading at $41.00, +0.52 (+1.28%). Technology has taken charge with the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) trading at $55.08, +1.01 (+1.88%).

Gareth Soloway
InTheMoneyStocks.com

6 Comments – Post Your Own

#1) On June 21, 2011 at 12:50 PM, IIcx (< 20) wrote:

"aid package to Greece that may be given as early as tomorrow" 

What???? 

Lets hope Washington isn't dumb enough to bail out a country that has a 100% chance of bankruptcy. This is the EC's problem, not ours. 

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#2) On June 21, 2011 at 1:09 PM, IIcx (< 20) wrote:

"The market is anticipating a royal flush of approval. Should something happen, the markets could freak out."  

Wrong, no one is going to "freak-out" unless our President doesn't start showing some leadership and realizes he can't fix the world's problems by dumping more USD.

What "bright-light" came up with the idea of bailing Greece out so they can perpetuate their delusions?

 

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#3) On June 21, 2011 at 1:32 PM, IIcx (< 20) wrote:

btw,

The actual reason we are seeing a bounce in the markets is because they are Over Bought.

There isn't any mystery to this other than the question, is this a Bull or Bear trap -- an ABC or a 5 up?

My guess is the latter unless the Green Shirt Movement or other Stupidity sours the wine.

 

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#4) On June 21, 2011 at 1:33 PM, davejh23 (< 20) wrote:

"What "bright-light" came up with the idea of bailing Greece out so they can perpetuate their delusions?"

What's insane is the fact that the debates going on are over 12 billion Euros for Greece.  Indecision over a measly 12 billion is moving the markets?...2-3 months of debt payments?   Even if it gets approved, we're going to go through all the debate and uncertainty again this Fall. 

"The markets are in rally mode today as positive comments from the Federal Reserve tomorrow afternoon are expected."

QE3 isn't going to be announced.  Anything else, and the market falls immediately following the Fed's statements...just like last time.

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#5) On June 21, 2011 at 1:44 PM, leohaas (36.25) wrote:

As usual, Inthemoneystock babbles. Even though posting daily on CAPS, I have yet to read anything useful from him. We might as well watch CNBC all day...

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#6) On June 21, 2011 at 1:58 PM, IIcx (< 20) wrote:

"..the market falls immediately following the Fed's statements...just like last time" 

You're implying a Bull trap yet it isn't logical -- "hang onto your shorts" -- one way or the other, its going to be a wild ride but bailing Greece out is just dirt Stupid and getting caught in the "Squeeze" is likely.

Odd that Greece was once the seat of Democracy now gone wrong?

; )

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