Don't be an economist, be a trader

Whether you agree with it or not, QE3 is here

I've been reading and hearing a lot of commentators talk about whether or not QE3 was the right thing to do or if it will work for economy stimulation.  I think that discussion is irrelevant to market traders.  The policy is here, now it is our job to deal with it and make money off it.  The Fed has pretty much thrown their full guarantee behind the stock market.. at least until the fiscal cliff.  That being said, I'm still watiting for the inevitable pullback before going long, and I still have my short ETF.. which is painful at this point.  Overall, not even QE3 rallies move in straight lines, and I'll show that after the scores.

Over 1100 on the daily score above!  New record hi.

Below are charts of the DJIA from the day of their respective Easing / Twisting announcement.  The initial pop is met with a swift and dramatic decline before the market takes off.  That decline is what I'm waiting for.

DJIA After QE1 announcement

DJIA after QE2 announcement

DJIA after Operation Twist announcement



Monday's news that will be blamed for market reversal?: