To my thinking once again, the best bulls can do is take us back to the ugly and unproductive trading range of 2015 & early 2016. Savant, I am not. I adhere to the philosophy of economist Edgar Fielder who stated: “If you must forecast, forecast often”.
There is no economic data or earnings to suggest happy days are here again. The only policy the Fed knows is one is to keep printing more money giving corporations the ability to borrow on the cheap and buy shares back in the open market. That creates a lower amount of float stimulating share prices to rise to the betterment of shareholders. While all shareholders benefit in the short-term, those with lucrative stock options benefit the most. This, in many ways, has created the wealth inequality we here so much about.
However, at the same time, this buyback activity robs investors of long term growth as corporate investing for the long-term growth disappears.
So stock markets rose again with the duo of cheap money and no interest rate hikes in the near future gold. Gold and weaker interest rates assured allowed the dollar to fall and commodities overall to rise. Janet probably knew these low interest rate policies meant this would be the outcome.
(I’m still having some issues with writing affecting my hands, please bear with me.)
Volume pretty much matched yesterday’s level and breadth per the WSJ was positive.
Chart Of The Day
Consumer Sentiment Friday may show good readings since it more weighted by stock prices than its rival Consumer Confidence. Then there’s the all-important quad-witching which can have an effect, especially on volume.
Let’s see what happens.
