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Someone said to me once that to be short is to cheer bad news. That might be so but then bulls seem to be cheering a lot of bad news lately as well. Each time major firms announce layoffs of thousands of employees [UBS and C for example] bulls cheer and buy those stocks, driving prices higher. So I’d say it’s an even proposition.
Until the Fed decides what it's going to do, markets will stay tense. Clearly, there was a leak indicating perhaps no interest rate cut or a cut and pause. The reaction was a hit to commodity prices and a bump in the dollar. The Fed must have noticed the reaction and would like nothing better than to have that impact. After all interest rates are very low.
I may or may not post tomorrow. Have a pleasant day.
Disclaimer: The ETF Digest maintains a position in IYR, XLB, XLE and MOO.