Quantitatively Easing Toward Dow 14,400

Allowing the economy to recover without any intervention is not in the Fed's game plan. Because of this, if you haven't noticed, you are in the midst of a great bull market. I know, it doesn't really feel like it but since early 2009, the market track is decidedly up and to the right. It really doesn't matter how it happened, we can only take advantage of the situation.

Let me guess, you missed much of the 2009 run-up. Go ahead, be honest. And then you made the most out of the September 2010 year-saving recovery. One for the win column.

I have a sneaking suspicion that QE3 will soon be upon us. Don't you? Maybe a sharp dip in the rather flat, bullish sentiment line will force the issue. This would mean some more serious downside action in the near-term before the continuation of the Fed's 2008-2012 bull market.

Why Dow 14,400? No particular reason except that I predicted the market would reach that level by August of this year. At least I get an "A" for optimism. Or is that an "O" for optimism, or an "A" for Aptimism? Looking at it from a "QE" perspective pushes that very real level down the road into 2012.

Related Post: Dow 14,400 with a Little Help from the Great Fibonacci