Germany Agrees To Euro Bailout, Next Up Is QE-3

This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 5.75 points to 1436.25 per contract. Earlier today, the Constitutional Court ruled that the European Stability Mechanism (ESM) is legal. The one stipulation from the high court was that Germany would only contribute €190 billion. That cap could be raised with parliaments approval. Most of this news is already factored into the market already. Some equities that are rallying on this court ruling include Bank of Ireland (ADR)(NYSE:IRE), National Bank of Greece (ADR) (NYSE:NBG), Credit Suisse Group AG (ADR) (NYSE:CS), UBS AG (NYSE:UBS), and Banco Santander, S.A. (ADR) (NYSE:SAN). The bottom line, the stock market loves inflation creation by the central banks and the recent move in asset prices proves that.

Tomorrow, the Federal Reserve (U.S. central bank) will finish its two day Federal Open Market Committee meeting. Most traders and investors are eagerly awaiting the central bank of the world to announce its next quantitative easing program (QE-3). Most investors believe that the Federal Reserve Bank Chairman Ben Bernanke gave the green light for QE-3 at his Jackson Hole speech in late August. We shall see soon enough tomorrow. Gold, silver, copper, and oil have all been soaring higher on the anticipation of this announcement.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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