Fed Bond Purchases

Yesterday (3/18) FED use their last weapon to rescue the US economics. There is no surprise that they don't lower the interest rate because it is only 0.25% rightnow. They will buy 300B long-term bond to active market money fluid. After releasing this message, the US dollar to Euro drop 3.4% to 0.74(Euro/US=1.34) which is the largest fall since 2000/09.

Amazing! Zero rate centuries comes~ No one knows the next step of America because the bubble affect every aspects of American’s life. So, they use the last trick: Print Money to supply more bullets to resist deflation. It occurs to me that a famous book published last year: 貨幣戰爭, which is made by 宋鴻兵. In this book, the author described the famous histories accidents, such as Independent War, Civil War, and Kennedy Murder are controlled by international banker of Rothschilds family. Maybe this time, the bankruptcies of Lehman, Faddie Mac, and Fannie Mae are the next masterpiece of the dark hand behind the US government.

Finally, let’s go back to review four major US index. For the DJ, it drops from 9000 to 6500 which is about -31% and rebound 15% recently. From the aspect of golden section theory, strong rebound is 0.618, and weak rebound is 0.5, the index is approach satisfied point. As we know, there is a strong relation between PHLX SEMI and TW index. In the appendix pictures, we could observe that both PHLX and TW are made a W-bottom and boost recently. In my opinion, the turn point will be around the end of March. Let’s wait and see my forecast.

Dow Jones Industrial Average

PHLX Semiconductor Sector Index

TW Index