June 20th, 2012
in Gary's blogging
Closing Market Commentary For 06-20-2012
At one point during the FOMC meeting today the SP500 moved down 7 points and then up 15, then down 13 points. Looks exciting on the charts, but in reality the 3X ETF's barely moved. If you were a trader, your skills would have been put to the test in grabbing the tops and bottoms. One 3X ETF only oscillated 1.37 points when it is capable of swinging 7 to 10 points without breaking a sweat.
Such is the markets today as the participation of investors is non-existent. Pros and traders alike didn't like what Ben Banana and his chorus of monkeys at the FOMC circus had to say today. Basically, they said if the market does go down we will be there to fix it and screwing any hope for employment and the populace by increasing the debt and inflation beyond anything you can imagine. There they go again, just like the last time. The most terrifying words in the English language are: I’m from the government and I’m here to help. – Ronald Reagan Follow up:
Follow up:Read at ZeroHedge, “One thing is certain: whatever GDP and unemployment are at the end of 2012, they will not be whatever the perpetually inaccurate Fed forecasts.” But remember, they are here to help us.
O.K. So Fed won't be buying European sovereign debt says Ben, but he did nothing to change the fact that Op Twist is simply building in a risk appetite against a severely deteriorating European financial situation that is going to bite someone in the butt. So, exactly what does the Nation get out of this continuing of debt? Not much at this point and it will come back to haunt these guy's at the Fed.
The Fed "isn't going to be buying European sovereign debt," Bernanke says before wrapping up his news conference. Those looking for hints of a bigger QE3 were thwarted, as usual, but the questions now are coalescing around a single one: If the Fed "can do more" if necessary - why isn't it doing it now?
An interesting article that becomes relevant as today's session comes to a close.
Can The Fed Remain Relevant?
“This is one of the more interesting [FOMC] meetings, in a sense, that we have had in a while because it's the first in which there was any meaningful uncertainty about the immediate course of policy. Twist is coming to an end shortly, so many observers believe that the Committee will use this meeting to take concrete steps to either extend Twist, offer a different version of Twist, change the verbal signaling significantly, or even signal QE3. The answer will tell us something about how the Fed is looking at the current portfolio of risks in the global economy. When I think about what the Fed will or might do - admittedly, as a cynic - I break it down this way: (Read Article Here)
Read the entire Fed FOMC meeting text here:
The SP500 at the close. Appears the 100 day MA is a major resistance, yet stayed above the 50 day MA..
The $RUT at the close. Notice that it closed just above the 50 Day MA.
The SPY at the close.
The DOW at the close. It also closed below the 100 day MA and above its 50 day MA.
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Written by Gary