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Stocks move to new session highs an hour before the bell, perhaps soothed by the FOMC's...

Stocks move to new session highs an hour before the bell, perhaps soothed by the FOMC's Kocherlakota arguing the Fed isn't easy enough. It's the opposite of 24 hours ago when John Williams' hawkish words knocked the markets for a few points. (SPY +0.9%), (DIA +0.4%), (QQQ +0.8%).
Comments (10)
  • This is the Fed's game - total misdirection. The market's been sucking it up, too. Now 999+ points of the '09 bottom. Pretty cool, hugh!

     

    That Fed booze is powerful stuff, but I think I hear some singing in the hallways.
    17 May 2013, 03:12 PM Reply Like
  • no doubt - the good cop bad cop routine has gotten old and predictable
    17 May 2013, 03:18 PM Reply Like
  • Remember Barton Biggs describing the internet bubble as the "greater fool theory"? Happening again as we watch
    17 May 2013, 03:19 PM Reply Like
  • Nothing better than a Keynesian beauty contest!
    17 May 2013, 07:35 PM Reply Like
  • Those guys should keep their mouth shut. They are sucking buyers in creating a very dangerous blow-off in prices!
    17 May 2013, 03:21 PM Reply Like
  • gdr,
    You wrote, "They are sucking buyers in creating a very dangerous blow-off in prices!"

     

    Both bulls & bears want this to happen... both camps can fatten their accounts from Johnny Come-Lately.
    17 May 2013, 07:41 PM Reply Like
  • OK, so make the a cool 1000 S&P points. I hope it doesn't close at 1666, though.
    17 May 2013, 03:29 PM Reply Like
  • That is exactly what the FED wants! Extremely high equity prices so people will feel confident and borrow and spend...Sure hope the music doesn't stop soon!!
    17 May 2013, 03:30 PM Reply Like
  • Tag team persuasion. Greater fool theory is appropriate, yes. The question is what the supply of fools is here.
    17 May 2013, 03:33 PM Reply Like
  • The quote below is from (perma-bull) Zachs.com email blast this morning, responding to yesterday's market action... (try not to laugh)

     

    "The ONLY Investment Story

     

    Stocks didn't flinch early in the day when all 3 economic reports came in under estimates (Jobless Claims, Housing Starts and Philly Fed). However, in the last two hours of the session the bottom fell out.

     

    Why?

     

    You guessed it... QE. That is the only thing that matters to investors these days. And that's why stocks tanked on the mere hint of potentially lower bond buying in the future from John Williams, the San Fran Fed President.

     

    For me this story needs to be filed under "Tell Me Something I Don't Know". We are ALL keenly aware that QE is not a permanent fixture. And that it will be removed once the economy can withstand it. So for stocks to drop that fast on that one obvious statement is laughable.

     

    QE will be unwound VERY slowly. And they will only continue to remove it IF the economy remains stable and growing. That kind of environment is generally very conducive to stock advances. So don't take the bait like these other chumps."

     

    I get the impression Zacks.com gets a little pissed when the market closes down. So to keep Zacks happy, please buy all dips until they tell you otherwise.
    17 May 2013, 04:59 PM Reply Like
DJIA (DIA) S&P 500 (SPY)