In March 2009 Bernanke embarked on the first US$ 1.75 trillion quantitative easing (QE) programme. After 20 months, he announced his second QE measure of US$ 600 billion last Wednesday, 3 November. The Federal Reserve needs to print more money for reasons they knew. There must be something really wrong to warrant this action that will inflate their balance sheet by another 30%. I would have been more optimistic if Bernanke has announced that further QE was not necessary. This US$ 600 billion proposal has further strengthen my hypothesis that the current up-trend is a bear market rebound, a mega wave b rebound.


As shown by the above chart, Dow is at the tail-end of mega wave b. Wave iii is about to finish.


I am expecting a wave iv correction of approximately 7%. The last journey, wave v, is likely to end in early part of 2011. Currently Dow is forming its mini wave 8, which may be completed within this week.

Dutaland

Very Impressive OBV that has been setting new highs. Price breakout should follow. Price usually follows volume.



If its price can close above 60 sens, that will signal the starting of the wave 3 of major wave (III).

Landmark

If the price can break the upper resistance line, it is wave 3 of (III). Failure which , it is forming a side way A-B-C-D-E waves.



Don't Worry be Happy.