Thursday, July 14, 2011

Bernanke this... Bernanke that....

Third day in a row the market is responding to every phrase or comma in a statement by The Bernank.  Essentially he has repeated himself 3 days in a row (the first being via the Fed minutes) but today the 'bombshell' was he was not ready to act immediately on additional easing.
  • ...the market started selling off on some of Bernanke's comments, including "not prepared at this point to take action," according to Peter Boockvar, equity strategist at Miller & Tabak + Co, in a note to clients.
Wow, nothing new there - but the market speculators took their balls and went home. (pouting)  Commodities sold off (just as they rose yesterday on even the hint of more easing at some point, some day) and with that went the 'risk on' trade.

This is the third day in a row we have also tested two support levels, so we'll see if this 1312-131 area holds.  The restistance areas have not meant a thing on the rallies, so it is interesting how we seem to cater much more to support than resistance nowdays.

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