Quote

Markets Worldwide

Day Trading

Stock Trading

Stock Market Analysis

Stock Rating

View More Topics >>

View Trading Glossary >>

Receive Alerts Free
For One Week!

Short Term PowerRatings
Use PowerRatings every day to find the stocks for tomorrow to focus on and the ones to avoid.
Sign Up Now >>
Long Term PowerRatings
Use PowerRatings to find the stocks to focus on to build your portfolio for long-term gains.
Sign Up Now >>
Gary Kaltbaum Intraday Breaking Setups
Let Gary Kaltbaum send you timely emails to alert you when breakouts occur.
Sign Up Now >>
Kevin Haggerty's Professional Trading Service
Every day receive the best plan of attack for the next day's trading directly from professional trader Kevin Haggerty.
Sign Up Now >>

New ideas for the Fed

By Gary Kaltbaum | TradingMarkets.com

Archives

Feedback

Email Article Link

Close X

First, a little rant...and then some short notes on Tuesday's action. Since October, every time the FED talked (and that's many times), the market reacted positively. Maybe they should have "The FED Cable Channel." Maybe they should have "The FED IPod." How about "The FED Phone?" Just turn it on and you will hear someone from the FED telling you how perfect everything is. Maybe they could just have the show "THE FED Idol." Every week, each of the FEDHEADS come out and try to top each other with pollyanish talk that everything is perfect. That way, the market will ramp up every day. We do not quibble with the FED thinking everything is perfect. They are a lot smarter than we are. In fact, they are right. There isn't any inflation. (clear throat) There isn't a problem with HOUSING. There isn't a problem with budget deficits, trade deficits, debt, derivatives...everything is just wonderful. Our problem...and there is no doubt in our mind...is that one day one of them is going to say something the market does NOT like...and this could potentially cause a severe dislocation. We do not believe the FED was invented to open their mouth on a daily basis...and that is what they are doing. There is not a day that goes by that Yellen, Poole, Bernanke and the rest do not yap away. We hope we are wrong about the outcome.

The latest FEDSPEAK ramped the market in a big way Tuesday. Major indices got back most of the 3-4 weeks of a nominal correction in one day. Volume was heavy. Normally, this is a bullish occurrence that will lead to upside testing. Even though we have been negative on many groups, we have told you that until support is broken, the market gets the benefit of the doubt. The fact the market held right where it needed to led to this move.

Nothing changed in all the COMMODITY sectors. They continue to ramp to the upside regardless of extended conditions. The main changes we saw on Tuesday were in the INTEREST-RATE sensitive areas.

HOUSING popped from their recent oversold drubbing. Volume was heavy. The move started one minute after the FED yapped.

UTILITIES also ramped off their lows. UTILITIES have been in a downtrend since October. Finally, the REITS bounced over 2% after their recent drop. We believe there is a chance that today's action in these areas put in a decent low...not to be taken out in the short-term. This can only help the market as INTEREST-RATE sensitve stocks make up over 30% of the S&P.

There is nothing bad to say about Tuesday's action overall. Breadth was strong...volume was strong and the move was broad-based. Just keep in mind that hundreds of companies are reporting earnings in the next couple of weeks. The playing field will most definitely change.

Gary Kaltbaum

>> See more articles by Gary Kaltbaum

Related Articles

More Related Articles >>

PREMIER SPONSORED LINKS

TRADE CENTER

The TradingMarkets Directory

Stocks

Options

Forex

E-mini/Futures

How to Trade

Tools

PowerRatings

Blogs

Premium Subscription Services

Stock PowerRatings

Free Trial

ETF PowerRatings

Free Trial

TradingMarkets Subscription

Free Trial

Daily Battle Plan

Free Trial

Gary Kaltbaum - Intraday Breaking Alerts

Free Trial

Kevin Haggerty Professional Trading Service

Free Trial

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.