Interesting comments from Stewart Thomson today. He thinks QE will happen and will be big:

"While I consider the August 7th-October 31st timeframe to be “crash season”, it’s highly unlikely that the Dow will crash right before the US elections.

I don’t know anyone who isn’t nervous about the market right now, other than myself (my bold). I always sell all Dow stocks at the beginning of each crash season, but that doesn’t mean I’m bearish.

Please click here now. You are looking at the monthly chart for the Dow Transports, and what is arguably one of the most bullish price patterns in the history of markets.

There appears to be a truly gargantuan bull continuation reverse head & shoulders pattern in play. It has been forming for five years. I think that most stock market investors are probably underestimating the amount of quantitative easing being planned by the Fed.

The size and shape of that pattern indicate that the Transports could rise to about 10,000. Could the Dow Industrials double in price, from here? I think the Dow can double in price, and will do so, because another round of quantitative easing would make institutional money managers begin to view the dollar as the “risk-on” trade, and the Dow as more of a currency and a “risk-off” trade.

What does that mean for your gold stocks? It probably means they are going to rise quite dramatically. Please click here now. The highs at point B were created by GDX banging into the lows at point A."
http://www.321gold.com/editorials/thomson_s/thomson_s_082112.html