It appears that QE3 & the formidable force of the 'Bernanke Put' still linger over investors minds.
And extending the bounce from Friday's post Jackson Hole lows - coincidentally into month end - the SPX & Russell fulfilled the promise of 1230 & 740 (see Monday's 'Angles.')
But has this Put much residual value?
On the basis on the unprecedented (well - the most in 19 years) and vocal dissent at/after the August 9th meeting - I suspect not very much.
Short-term thinking (& incentives) dominate investing (& our daily lives) and too many in the 'market' are rewarded with the easy fix rather than having to deal with profound long-term fundamentals.
But read the comments - for example:
Plosser - 'Our problems are not easily addressed by monetary policy' and the 'Fed is risking its credibility because its doing things that don't work' ....
Fisher - the Fed 'should never enact asymmetrical policies to protect stock market traders and investors' ....
And perhaps think about re-pricing the value of the very long held option Mr. Greenspan wrote.