Part 1 is here
In late September I asked the question if the Fed Operation Twist will coincide with the next rally on the stock market.
Here is the schedule of treasury purchases by the Fed for Operation Twist :[Link]. The very first one is on 3 Oct 2011 when the Fed purchased $2.7B of treasuries from the market. Lets see what happened following the start of Operation Twist:
It is strange that as the financial media harps about the disastrous downgrade of Spain, potential downgrade of France, contagion in Europe slowdown in China, rising frustration over the economy, rising unemployment, impending recession...and all the bad news, the US Dow Jones Index rose 10% in 2 weeks starting exactly on the day Operation Twist was put into action.....I looked around and nobody actually noticed or reported it in the media....