Written by Gary
Closing Market Commentary For 09-18-2013
My personal opinion, for what it is worth, is that the Fed's are a totally irresponsible bunch of Keynesian scholars that have their heads up their butts. No one group of unelected people have done so much to ruin the US dollar, raise the debt and jeopardize the economy than the US Federal Reserve.
By 4 pm just about every major large cap average made a new historical high and left gaps galore, not a bullish indicator in the long run. Quite surprising to say the least.
Today's market action will reverse itself shortly as this incomprehensible action of continuing QE only serves the HFT computer gang and the fat cat bankers. Eventually, the populous of the Nation will be the ones that suffer as they will be the one that have to pay off this Herculean debt - sad, very sad.
These goofballs and clowns that report to no one, had the chance to bow out of this gracefully, somewhat anyway, but blew their chance spectacularly at the expense of the poor and middle class.
I wrote last week that the forming triangle comes to a tangent somewhere between March and August 2014. The SP500 price target of 1950 mentioned in the blurb below is still in the rising triangle and the breakout may come sooner rather than later, even the CBO says this debt is unattainable.
With the Taper now off the table, and with the next earliest probable discussion of a Taper at the December FOMC meeting if then even, Bernanke - who may now stay have no choice but to stay for a third term - has decided to reflate the bubble to end all bubbles, along the lines of what we speculated may be the case in "Bernanke's Helicopter Is Warming Up", it is worth refreshing what Bernanke Asset Management's year end stock market target is.
As a reminder, back in April we highlighted that in a world of central planning the only relevant thing to risk assets is the size of the Fed's balance sheet, and since there will be no change in the rate of ascent, we can once again repost what we showed nearly 6 months ago as to where the Fed believes the fair value of the S&P500 should be. The answer: 1,950 or bust.
The DOW at 4:00 is at 15677 up 50 or -0.33%.
The SP500 is at 1701 up 147 or 0.95%.
SPY is at 173.02 up 2 or 1.16%.
The $RUT is at 1077 up 11 or 0.99%.
NASDAQ is at 3784 up 38 or 1.01%.
NASDAQ 100 is at 3231 up 40 or 1.27%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is positive.
WTI oil is trading between 107.69 and 104.76 today. The session bias is positive and is currently trading down at 107.27.
Brent Crude is trading between 111.06 and 107.64 today. The session bias is positive and is currently trading down at 110.58.
Gold fell from 1367.22 earlier to 1291.73 and is currently trading down at 1364.20.
Dr. Copper is at 3.320 rising from 3.206 earlier.
The US dollar is trading between 80.29 and 81.37 and is currently trading down at 80.31, the bias is currently sideways.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary