Equity Shortists : Don't Underestimate Quantitative Easing (QE)

Oct. 8, 2010 - PRLog -- Japan got the QE (quantitative easing) money press rolling. UK (inclusive of EU) could be next after weak growth. US also in the QE queue. Never, never under-estimate the coordinated efforts of G7's QE money press machines. G7 must help the poor consumers (victims of the poor economy) and not the super rich.

Equity market will speak louder soon... Hope shortists don't get squeeze hard in the short term. Big Shortists "slaughtered" US market and world markets from 2008 to March 2009. Central banks keep printing $$$. US and EU Economies started to recover and recently showing signs of weakness, equity shortists got the ball rolling higher everyday in October. CBOE options are showing the facts!  Perhaps, short options should be removed totally, but the "pull and push" thrills will be gone! If investors are squeezed hard instead of shortists, that's fate! Life has to move on... Upcoming US senators' election, consumers' behaviour will tilt towards... Investors better sideline to protect their hard-earn capital until direction is clear.

80/20 rules, central bankers need growth in employment and simulate consumer's confidence to spend. If 80% loss money to the 20% shortists over a prolong period, any advantages! If 80% of the equity pool makes money, there's a difference in the economy. Shortists' pool have "rich fund" who made many billions in USD during the Lehman's collapsed. And perhaps, "compound interest + some capital" pay back time to the "Super Rich" press machine after pumping Trillions to beef up the economy. Don't forget, money press machines also need electricity to run. May be need to pay press machine depreciation and electricity bill on behalf of taxpayers. No one can predict Big Ben's mind but will be unleashed soon...

Fictitious story for fun reading only over the weekend.

# # #

Trader stock market trend (bull or bear) is set by stock market fundamental and technical analyses, and sentiment indicator. Trader's stock Market Trend Headlines has effect on investor's market sentiment! Blog : http://TraderMarketTrend.blogspot.com