BarroMetrics Views: QE Ended?
Probably not because the markets know that while the US$85B per month has stopped, the funds created by QE are being reinvested and that is still being made available. In addition, judging from what the Yellen has said, it may be end 2015, before we will see a rate rise.
In addition, for FX traders, we now have the EU and Japan all continuing with their QE.
It seems to me that we now have a trending US$ and a trending US stock market – both up. The only fly in the ointment is a Black Swan event that will deflate the belief that FED action can forever postpone economic reality.
So, until that happens, my strategy for both the US$ and the S&P is ‘long or out’.
The US trade is still in its infancy. You have a chance to get on-board by selecting a US$ pair of your choice. The various currency strength meters will help you decided on a pair. Just Google ‘currency strength meter indicator’ and choose one that you like.