Once again I am seeing a lot of bad comedy trickling out of the Federal Reserve, and in particular preceding FOMC rate decisions or announcements. A salient example scrolled across my twitter feed just moments ago with Jeff Lacker allegedly having stated that the Fed should raise rates sooner rather than later. Apparently Mr. Lacker is once again engaging in the verbal equivalent of smashing pumpkins, given that chairwoman Janet Yellen is scheduled to speak today as well as tomorrow and will most certainly continue the FOMC’s dovish course. In particular as President Trump has continuously highlighted a strong belief in a weaker Dollar.
Okay, so let’s get this out of the way once and for all. I can totally understand if you don’t care that much about American Football and may just have better things to do than spend your weekends watching 22 guys in helmets and spandex have at each other. But if the annual Super Bowl doesn’t make your heart jump at least a little then you may as well just buy yourself a ticket to 1980 Soviet Russia and stay there. Alternatively just move your ass to Berkeley.
I know exactly how you feel. For weeks on end equities gyrate inside a 50 handle channel and suddenly we get a blast off out of nowhere. Annoying. But absolutely unavoidable and I recommend you don’t waste time emotionally chasing a trade which was largely bot driven and may be reversed at a moment’s notice. The Zero chart below shows us minimal participation throughout yesterday’s session and as such the advance should not be trusted. Congrats to you if you managed to trade it higher but it is probably best to not overstay your welcome.
Apparently Ozzy was right, there’s no rest for the wicked. It’s been an awesome Christmas season thus far and there appears to be no stopping the current equities rally. After an obligatory down session prices are pushing higher yet again and I’m actually considering a re-entry on a small dip lower today: