Market Direction Model
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| Impulse Indicator Buy Signal Negated |
Trendline Analysis
Nasdaq Composite Index
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| 60 Minute Chart Each candlestick represents 60 minutes Rally Fizzled |
The day before Ben Bernankie's address to Congress on Thursday the headline news was:
Fed’s Janet Yellen calls for strong action to boost economy
The Federal Reserve’s second-most-powerful member is calling for aggressive action to boost the U.S. economy — hinting she might favor extending the Fed’s “Operation Twist” and launching a third round of so-called “quantitative easing.”
“I believe that a highly accommodative (Fed) policy will be needed for quite some time to help the economy mend,” Janet Yellen, vice chair of the Federal Reserve board of governors, said this evening in remarks to the Boston Economic Club. “I anticipate that significant headwinds will continue to restrain the pace of the recovery.”
The market was expecting Ben Bernankie to parrot these comments in his testimony to congress Thursday morning. That did not happen. The message was to the contrary. Bernankie stated that Fed accommodation (quatitative easing) was not forthcoming at this time.
As you should know by now, the markets are addicted to Fed accommodation (printing money). Gold plunged, oil sold-off and the large player investors reversed course and proceeded to shave nearly 100 Dow points off the day's high to close up just 46 points.
The tone of the market has been dampened until the next market moving headline.
Addendum:
Friday Morning 06 08 2012
Our core equity defensive positions are doing well this morning.
GWM Core Equity
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.
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