Radio Rallies & Reversals

"There's no turning back now unless the FOMC is willing to risk a major market disappointment." - According to Credit Suisse. All eyes and ears will be on the FED next week for a sign of QE2 to come. Credit Suisse is upgrading the metals and mining sector to overweight based on 4 factors: 1. QE2 helps commodities as other centrals banks are forced to do the same; 2. they expect ISM and global IP to trough next month; 3. China is re-accelerating; and 4. valuations look reasonable.

There's an interesting article in this weeks Economist magazine on global house prices. According to the article, Canada's housing market is roughly 24% overvalued based on comparing the current ratio of house prices to rents, with its long-term average. The most overvalued is Australia at over 63%. The US is fairly valued.

It's a big day on the earnings front and so far the numbers continue to surprise on the upside. North American markets are back in the green after yesterdays sell-off.