Fed minutes were released @ 2PM...............Traders SOLD on the news immediately...Dow went from from 25+ to -30 in 5 minutes.............similar action in nasdaq from 5+ to 5-.
Investors like most of US sat through the YO YO mode and watched Dow came back to 5+ in a hurry...TRIGGER HAPPY is not working these days.
Fed said the following:
Housing weakness will continue longer than previously anticipated.
Housing weakness will affect consumer spending.
Housing weakness will reduce inflation.
Risk to the economy is on the weak side.
Inflation remains a concern.
In plain english INFLATION is softening than before.
Housing will remain WEAK.
The above TWO points is good for the stock market going forward.................NO interest rate HIKE.............but a CUT by end of the year ( all my interpretations).
As I finish writing DOW UP 27,Nas & S&P UP 4+.
Stock market in US is showing GREAT RESILIENCY..............a sign of a MAJOR BULL market.
Stay Long & Stay patient.
Saleem
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