The collision of global markets and social mood

Wednesday, November 20, 2013

Probably

Probably, likely, perhaps. For those hoping for a sure thing, it doesn't exist, especially as Bernanke reminded everyone during another soothing speech last evening. The outgoing Fed chairman spoke of the final end of their asset purchases as if it might never happen. Might.

Markets are very hard to predict, and thus predicting what the Fed may or may not do is even harder. The best we can do is to be on guard for the unexpected, as was the message of September Vogue 2013.

What if Yellen increased the Fed's asset purchases from 85 billion to 125 billion and the markets went down? Sounds nuts. But it could happen.

For the time being, the market has yet to send any signals of concern. 1773.44 is still the first warning. 1780 continues to be an area of interest being the 38% Fib retracement level. Unless 73.44 breaks, the markets are probably headed higher. Probably.

No comments:

Post a Comment