Thursday, June 25, 2009

QE Markup!

The buyers started to stumble in the final hour but regrouped just in the nick of time to take us out near the highs of the day. Even if you were looking for some end-of-the-quarter window dressing to kick in, the move today was surprisingly strong. Breadth was quite good at around four gainers to every one loser and every major sector finished in the green.

What helps the bulls on a day like this is that the bears just stand aside and let the bulls do what they please. We have three trading days before the quarter comes to an end and there is no way to predict how much they will try to run things up before then. With the indices showing a gain for the quarter, a lot of money mangers need to make up some performance and chasing high-beta stocks is usually the way to do it.

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