Just last night, I mentioned the Fed's possible discomfort with readings that are pre-inflationary signals. The Fed dumping more liquidity into the market/economy, will simply devalue the dollar further and stoke the flames of inflation all the more.
I also noted that the Fed's QE2 is already priced into the market so anything less then what is expected will send the market packing.
today we had Janet Yellin, Vice Chairrman of the Fed speaking in Denver,
"It is conceivable that accommodative monetary policy could provide tinder for a buildup of leverage and excessive risk-taking," Yellen said.
Not good for the market.
Right now the DIA, SPY and QQQQ are all in negative 1 min divergences, I'd expect a turn down soon.
5 years ago
5 comments:
I live and work in downtown Denver. Maybe I can go give her some insight on how the markets really work. It seems like the Fed could use the heads up.
The spy has been developing a rising wedge since the open.
Hey QS, I'll be out in your neck of the woods in about a week. A couple of us are going Elk hunting in Crested Butte area. Passing through Denver on the way.
That is beautiful country.....enjoy.
We'll do, hoping the snow holds off. Probably won't be that lucky. I was looking to have my position in the stock market solidified by the time I leave. As you say, the market has it's own timeframe, regardless of what we would like it to do.
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