The market needed a rest after its strong break back up through the 50-day averages on Wednesday. Yesterday it rested in a healthy, consolatory way, which projects more upside to come.
Right now the market is betting on rate cuts, which essentially mean pumping more money into the system in order to sustain a healthy growing trend in the economy. As long as the market continues to hold out hope for rate cuts (the cuts don’t necessarily need to come mind you) then the market should continue to power higher here. Hopefully Bernanke won’t issue a clarification statement the way he did when he first took over the chairmanship. A statement issued that tells the market it has it all wrong would not be good for stock prices. We doubt he will though. Surely he learned that the market hangs on his every word last time he did so.
3 comments:
Personally, I don't understand why the market doesn't take a dump every time they hear helicopter Ben's name mentioned.
this time just short the dow if it opens higher. regard.
helicopter ben plays only a very long term role that won't really affact the finance market immediately. regard.
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