Do not trade or invest whilst praying for QE3. If it happens it happens, but even the ECB didn’t institute bond buying. I know that they are a bit more straight-laced than the Fed is, but maybe they just saw how ineffective QE was here. It did not solve the jobs issue. Not even sure it dented it.
The jobs report was good today without QE3. There would have to be another liquidity crisis for QE3 to be used. It cannot just be a poor economy. That is something for the politicians to try and sort. They can try to lower rates further, but I think they are happy using Operation Twist for that.
Now with all that said, pay attention to the QE3 rumors. Look to play the artificial price action that speculation creates. The strategy is to act like QE3 is happening, but sell faster. Those that truly expect QE3 will be left holding the bag if they hold too long. Look for any hints of a change. Your first sign will be any news release or press conference by the Fed. When the market gets no hint of QE they will head for the hills.
Obviously there is money to be made on the irrationality. QE3 is the expectation of maybe a 3 month or more rally. You bet on maybe 1 month tops, and you can preserve your wealth and maybe grow it some.
I am still working on the graphene article. Got about half of an Apple article, maybe (the other half might go on SeekingAlpha). Then I want to put 1 more article on SeekingAlpha about ALU, and one here about Sprint.