Opening Market Commentary For 06-26-2014
Premarkets were flat then rising at the report of Americans filling for first-time benefits fell indication of a positive market opening. Plus consumer spending and personal income rose helping the premarkets rise fractionally.
Markets did open up and then immediately started falling to where they were off -0.70% in the first 15 minutes on moderate volume. By 10 am the averages has stopped the decline and started a modest reversal thanks to the BTFDers, but the DOW was off triple digits.
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Follow the Fed and the markets fall – huh? The current trend is positive, natural after a deep drop, but will it continue? Many analysts do not think so.
Stocks Slump As Fed’s Bullard Warns The Market Is Wrong
Stocks Slump As Fed’s Bullard Warns The Market Is Wrong
“Markets don’t appreciate how close the Fed is to its goals,” and thus tightening, is the warning from the usually quite dovish Jim Bullard.
BULLARD SAYS MARKETS DON’T APPRECIATE HOW CLOSE FED IS TO GOALS; MARKETS SHOULD BE PRICING IN RATE INCREASES BASED ON WHAT THE FED SAYS
Remember, don’t fight the fed – unless they say sell?
The short term indicators are leaning towards the hold side at the opening. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA’s, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500MACD has turned down, but remains above zero at 14.31. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a56 % buy. Investing.com members’ sentiments are 59 % bearish and Investors Intelligence sets the breath at 68.5 % bullish with the status at Bear Correction.
The markets are still susceptible to climbing on ‘Bernankellen’ vapor, use caution!
