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The Tepper Put is On

The Tepper put is on. As the S&P 500 moves through its resistance of 1150, what is clear fromtoday's news from the BOJ is that the largest economies in the world--the UK, the U.S., Japan, are all QEing ... the world is awash in money.

I noted in my prior report that stocks are rallying because traders are coming to believe the Fed will be involved in QE, perhaps even to the extent that it will, like the BOJ, consider buying equities.

What does this mean? It means traders are not going to sell stocks--not immediately---they will ride the gains. There is a chance that we can go a lot higher, since many portfolio managers remain under-invested.

The problem: QE is being met with derision by many circles because it is not believed it will trickle down to the mass population.

On top of that, QE2 is becoming priced into stocks, and could end up being a huge sell the news event when it comes ... OR if it doesn't come and the economy improves, the stock rally will be muted.

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