EARLY QE LOOK

Equities took a drubbing last week on the heels of a scare out of China that they were nipping growth in the bud- probably not going to happen.

This morning - futures are moving up as the dollar is down - and the markets are a bit over sold- in the short term:

RSI 2 readings as follows:

SPX 9

DJIA 5

NAZ 9

NDX 7

GOLD 11

VIX- not telling much as it is about 6% above the SMA 10.

Bought some USO on Friday and looking to add more longs today as I suspect equities will rally into the end of the year- lots of folks under performing whose main hope is to buy dips - and it just dipped.

Just read the WSJ post by Alan Blinder on QE2- liked it and agree with it - he makes lots of good sense.