Into the Quarter end

As I discussed all the time, economy is always yelling to equity market, "It is way to fast". I am expecting QE3 or in lieu, that is something to bubble it up. Without it, we are going to do some gravity check, like the one we are in. Previously I always go long ahead of FED decision, and exit if FED failed to deliver. This is a conservative play, but I missed some profits. Not this time. I try to learn from previous experience. Maybe I should, but let's see how it works this time. In my early June post, I put down my summer plan as a box trading, from 1290-1370 with a mid line of 1330. I will still play my plan with micro management. If it is too close to the top I will underweight, vise versa. Here is an interesting chart from my friend Kena.

What does this chart say? It is trying to chart the relationship between market liquidity with equity index (NYA in this case). There could be chance big boys start to buy at this point. This is the quarter end. This is a Q that equities sharply underperform bonds. I am expecting equities to rally in the last week. Kena also posted another interesting chart.

I am agree with it says. I don't like Obama but I think he will get reelected.