GREY:SXRZF - Post by User
Post by
PUNJABIon Sep 13, 2012 4:26pm
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Post# 20359666
Liquidity / Open ended QE3
Liquidity / Open ended QE3 U sector is weak because of U308 prices. Opened ended QE3 means that US $ is being devalued which means that the commodities & gold prices will rise. Will it have any bearing on the prices of U308 I do not know because of limited market & weakness in demand.
If the overall markets move higher because of excessive cheap funds then all stocks will move higher. Some sectors will do better than others. The tide will raise all boats including U stocks too. There is a chance that U stock may have delayed movement & may under perform other sectors but U stock will move higher with the market.
Now if this QE3 does not work then what. One day a price will be paid for all these QEs. Todays decisions was more of a political decision. After elections things will change when govt will have to deal will real issues of excessive debt. In the meantime one cannot fight the liquidity & have to ride the wave.
Any one shorting UUU at this time at these present price is making a mistake in the short term that is till the election time.
I am going to trade UUU long only even when U308 prices are weak.