Fed Stays Status Quo

bernanke fed meetingMarkets cheered The Fed's decision to keep rates at essentially 0% for an extended period of time as the Dow closed up another 120 points. It is very evident that indeed we are and have been in the midst of a vicious bear market rally, one of which I wished I could have capitalized on more. However, markets have performed in a very unorthodox manner and I fear that many have been fooled into thinking that we have seen the last of a declining stock market. Unfortunately, market crashes usually take investors by surprise, so to see such mass positive sentiment is not that surprising to me.

In addition to The Fed keeping the rate the same, they also announced their plan to slow down the purchase of US Treasuries. Really?! Who is going to buy the trillions that are left to sell? You know China isn't. Down the road, they may consider slowing that process, however, I don't see how they can begin that anytime soon, considering the amount of debt that we are in and the state of the global economy.

Despite the craziness of the market, Market Trend has done a great job of technically tracking buy and sell points in recent trading. I am posting a link of their most recent video showing their flawless technical trades they have called the past 24 months. Click here to watch the video, it is pretty impressive.

There is no nerve in my body pushing me to consider to go long at this point. Although, there may be a bit of steam still left in this push, I cannot see the markets going much higher. We have bought this market back up to levels with expectations of a non-recession economy by next quarter. If such lofty goals are not met, the market risks falling quicker then it climbed. Fundamentals, where are you? Happy trading.



    Great picture the deer in the eye look.