Yellen Express Plants Seeds for Speculation

Investor’s first readDaily edge before the open

DJIA: 18,076      
S&P 500: 2,099
Nasdaq Comp.:4,982
Russell 2000: 1,252                         

Thursday,  March 19, 2015    8:52 a.m.

    Monday, Wall Street celebrated bad news of  slumps on Industrial Production, New York area manufacturing and homebuilding.

     The Street was heartened by the reports, since they suggest the Fed will not raise its benchmark interest rate in the near future when the economy is slowing.

    Yesterday, Fed Chief Janet Yellen assured the Street it would continue to be be accommodative in its policy, i.e. don’t fret a rise in interest rates anytime soon. 

    It is clearly the Yellen Market now, she owns it.

    I have been a bull with warnings of a correction at times since March 10, 2009, and remain so as we enter the final blow-off stage, one of rank speculation with a predictable result – a bear market when no expects it.

    That could still be months or even a year or two out.

     What amazes me is the behavior of the Street.  Amateurish !

     What happens when  bad news becomes worse news and Yellen’s comments lose their clout ?

      What’s my point ?

      These silly reactions to predictable statements by Fed’s Yellen are setting up a horrendous correction/bear market.

      Most likely “easy money” will be made in bundles before the crunch.  I still don’t hear  much boasting by the small investor about big scores in the market, so the fever hasn’t reached a shrill pitch – YET.

       Quadruple Witching Friday looms bringing the potential for increased volatility. On the 3rd Friday of March, June, September and December index futures, index options, stock options, and stock futures expire.

TODAY:  Yesterday, the DJIA reached  Tuesday’s projection of 18,096 , but exceeded  my  2,094 target.

Near-term support is DJIA 17,967,  S&P500: 2,092, Nasdaq Comp.:4,972. The Russell 2000 is simply on a tear, reflecting a surging fever to get on board the Yellen Express.

     Speculative fever is mounting.

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

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Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

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Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

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