After Fed announced and confirmation to shrink QE and end QE in 2014, a huge fear from world wide finance system and investors,
- many investors and investment bank sell their investment in south Asia and emergency market, flow back to US.
- China and Japan start to sell a lot of US Treasury and cause a jump a Treasury and bond interesting rate, and Treasury ETF like TLT drop a lot;
- Big drop of IDX, INP and THD, ETF for south Asia stock market almost like a crash, then, more drop may show its value again.
According to the K chart analysis, S&P500 is still on a bullish shape and wait for company income statement and finance, revenue report of Aug. 2013; so there are several key point for next 2 weeks:
- Most companies continue to improve their revenue and profit?
- Any continue of rebound in the market suffering of big crash like IDX and INP?
SO we need to watch carefully the impulse response of QE shrinking to world wide finance system.
So we need to continue to watch the situation change due to QE shrinking is an impulse response to world wide finance system.