Friday’s Big Volume Winners Say Fed Will Act

Every QE-friendly ETF in the table below traded on above average volume on Friday. Using JJC as an example, it gained 4.97% Friday on a volume-adjusted basis, the nominal gain was 4.07%. JJC’s volume on Friday was 161,078 shares, average daily volume is only 72,528, meaning the big gains occurred on a 122% increase in volume relative to average volume.

From a post-employment report Bloomberg article:

Policy makers will give “strong hints” or provide “positive action” at the Sept. 12-13 Federal Open Market Committee meeting, said Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co.

The Fed will likely ease further through “open-ended” purchases of Treasuries and mortgages and extend its pledge to keep interest rates low into 2015, Gross said in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt.

With an open-ended program, the central bank would announce a monthly amount of bond purchases that would continue until the economy’s performance meets its objectives.


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