David Fry's Market Outlook for Thursday

“Federal Reserve Chairman Ben Bernanke reiterated that the Federal Reserve is closely monitoring markets and is ready to act if necessary.”
MarketWatch

Bernanke also suggests that some “creative thinking” be applied to allow subprime borrowers a chance to refinance. This reads to me like a bailout proposal.

These statements ignite a rally.

Is there really much to say about these last two days? You can’t make this stuff up!

I’ll just post this chart along with volume data.


(click to enlarge)


We experience another 90/10 day, this time on the upside, whereas Tuesday was the opposite.

On light volume, the market continues to don its “casino look”.

Bernanke speaks on Friday and investors should wait for the bearish/bullish results, if any, before jumping in one way or another. But he definitely tipped-off bulls that the Bernanke Put is in play. Should the Fed not cut interest rates there will be hell to pay.

And, let’s not forget some obligatory portfolio window dressing is again at work.

We probably won’t post Thursday as we await more chart direction.

Have a great Labor Day holiday!

Comments

[writersblock]

Why are these articles now coming a day late, when the info is stale? Can't find it on the front page, either. Please correct email alerts problem, and please return author, date and time to the front page.

[SA EditorEli Hoffmann]

Hi writersblock,

In the process of moving to a new front/backend, we've encountered some difficulties, including email alerts, uploading images etc. Please bear with us; we're doing our best to get Dave's great posts up as soon as possible.