A divided Federal Reserve Committee caught a “Hey, careful dudes†sort of sideways glance from our Rallysaurus.
As if to say, “We need our friendly dinosaur to continue to roam the markets until after Novemberâ€, half of the Fed stated that they want to wait longer before raising rates.
The other half believes the U.S. is close to a fully recovered job market, implying that the Rallysaurus will roam regardless because the economy is sucking on its own fossil fumes.
Next up, the September meeting where once again we are hearing rate rise rumors coming up from the ground like a bubbling crude.
If you could turn the pages of the above issue of the Scientific American with our Goliath on the cover, what might you learn?
Guess what? I did.
“An extinct, flesh-eating, crawling monster that made life unpleasant for the Texas Lizards of his day. Why nature gave him a spiny crest no one knows. Perhaps this curious excrescence was a means of impaling enemies whose too aggressive impulses prompted them to leap on his back.â€
Does that same statement apply to the market Bears in today’s world? After all, the Bulls post-Brexit have been flesh-eating the Bears. And, as if the Bulls wear a protective spiny crest, any Bear that has jumped on its back has wound up impaled.
With that all said, the Modern Family has yet to work in synch with one another.
If indeed the U.S. real economy is improving, the Russell 2000 (IWM) must not repeat the price action from last July/August. After peaking at 123.67 in the summer 2015, (this week’s high 123.68) every rally thereafter was met with heavy selling.
Furthermore, Retail (XRT) has yet to make new 2016 highs let alone trading anywhere near August 2015 highs.
Inherent weakness, in spite of the recent tear to new all-time highs in the S&P 500, Dow and Nasdaq persist. Although the Fed takes heavy criticism from maybe everyone, truth is inconsistencies do exist in the stats they use to measure the health of the economy.
