The European Central Bank (ECB) announced a bond-buying plan Thursday that lifted U.S. Markets to levels we haven’t seen since 2007. China followed suit with a post on the National Development and Reform Commission’s (NDRC) website announcing plans to boost infrastructure spending. Together, these announcements helped investors feel better about global growth.
Just as the market was feeling like the “sky was the limit,” the US payroll report this morning was so bad that the market reacted like “a rebel without a clue” by continuing higher. The reason for today’s continued rally “into the great wide open” is predicated on the belief that the Fed will announce some version of QE3 next week. Read more about Dark Horse Trader's Hedge: Market Moves Into the Great Wide Open, Option Review September