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    Sector Detector: Bulls Pause to Celebrate 2-year Anniversary

    Thu, 03/10/2011 - 10:50 EDT - Seeking Alpha
    • BRKS
    • CCI
    • CLNE
    • ENOC
    • IDU
    • IOSP
    • IWM
    • IYC
    • IYE
    • IYF
    • IYH
    • IYJ
    • IYK
    • IYM
    • IYW
    • IYZ
    • MDY
    • MERC
    • RBCN
    • SBAC
    • Scott Martindale
    • SPY

    OptionMonster submits: Today marks the two-year anniversary of the V-bottom that launched an impressive bull market. Since then, the S&P 500 (SPY) large cap is up about 95%, while MDY mid cap and IWM small cap are up about 135%. Leading sectors include Basic Materials, Industrials, and Financials, which are each up at least 150%. Pretty impressive. Much of the fuel for the persistent rally has come from QE2, in which the Fed prints money and employs its Permanent Open Market Operations (POMO) to buy Treasuries from the primary dealers in order to keep rates down, and that cash generally goes into equities and commodities. However, QE2 is supposed to end in June, and the promise of a QE3 is dependent upon things like oil prices, which could undo all that the Fed has accomplished in stimulating the economy if they continue to climb much higher. Oil is hanging around the $104Complete Story »

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