$40B a month of QE (completely focus on MBS) until at least end of year
Exceptionally low rates pushed out to at least mid 2015.
More or less what was whispered….except that all the QE will be in the mortgage market, rather than a mix of Treasuries and mortgage backed securities.
Big line here —> FOMC: "expects that a highly accommodative stance…will remain appropriate for a considerable time after the economic recovery strengthens"
Been a rough few months for the former high flier Monster Beverage (MNST). Late this spring the stock briefly rocketed intraday to near $80 on a report Coca Cola would make a move to take the company over. (later disputed) Then the stock suffered along with the rest of the market May through July. A weak report smashed it mid August, and this morning a disclosure about the NY AG probing the industry of energy drinks for misleading practices hit the WSJ and is crushing the stock anew. …
It's been a rough week for the NASDAQ as the index has given back a big portion of last Thursday's gap and go session.
A lot of this is due to an over reliance on Apple – which of course has been a big positive in 2012 as the stock has had a huge run. But going into this afternoon's iPhone 5 launch the stock has sold off in a material way (relative to it's normal history). …
While this bailout fund approval was widely expected by the German court it was a potential fly in the ointment. Futures are happy with the result as we begin day 1 of the Fed meetingl the euro rallies and the dollar continues a major swoon. Via Reuters:
I am using the UUP ETF as a stand in for the actual dollar since it charts real time on stockcharts.com but as you can see below, the U.S. dollar is in an extremely oversold position. I believe the general thinking of the market is since (a) Draghi will do "whatever it takes" to keep the euro together, you have the euro breakup scenario off the table and (b) the Fed will be doing a pure QE while the ECB will be doing sterilized actions, hence the dollar loses the ugly duckling contest. And as we know, when the dollar pukes usually every risk asset rises. That said, things can get to an extreme – so it is interesting this is happening just before a Fed meeting. …