Fed Chair Janet Yellen has it both ways—she continues to suggest U.S. economic growth is “solid” but says global growth is weak (China) hence, raising interest rates will be measured or slow.
This is mana for bulls which then means bulls can play and so too can other markets. Since growth is slow, even in the U.S., this is the cover the Fed has to please Wall Street, voters and bulls.
Who is she kidding?!
No matter the contrived BS bulls now can assume the recent recovery rally was well-known by insiders on Wall Street.
Now I’ll say we have some substantial positions in stocks since tape action is the discipline we must follow even as we rage against obvious dishonesty and the machine.
The assurance of lower interest rates also benefits commodities with commodities overall especially gold but not crude oil, at least this day.
Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day green may mean leveraged inverse or red leveraged short.
Volume was quite low Tuesday and breadth per the WSJ was positive but Money Flow didn’t participate.
Chart Of The Day
Most of the important data will be delivered on Friday with the Employment Report and other manufacturing related reports.
Tuesday’s turnaround on very low volume was more impressive in points gained by weak investor participation.
Yellen’s trickeration allows her to hide U.S. economic weakness by blaming China and other weak country’s GDP. Let’s see how far this can go.
Let’s see what happens.
