May 22, 2013 (update: 2:04 PM EDT)
So, U.S. markets have turned negative. It has nothing to do with tech but everything to do with hints from the Fed that many of its members favor tapering of asset buying program as soon as next month.
First, the Fed chief Ben Bernanke said, if economy continues to improve, the Fed might go for tapering the QE3 program in “next few meetings.” With this comment U.S. markets dipped and the Dollar index flew high.
Then cam FOMC meeting minutes which showed “a number of participants” favored reducing of QE3 as early as June.
That did it.
U.S. markets are now diving down in the negative.
But it was expected, wasn’t it? I mean, the Fed’s response?
Remember, I had written about all those Put Option buying in U.S. indexes last week?
Read here once again: What made US Markets rally on Friday?
Markets whales know what is going to happen, charts tell us what market whales are going to do, and I, dear friends, sniff around to tell you what charts are telling me
Now I’ll go pat my back some more. You can keep coming back to read what no one else tells you about markets *grin*.
(Earlier: 9:16AM EDT )
Guys, I hope you have been having a wonderful day!
We are back for the opening bell in U.S. markets, with a red carpet to welcome the Fed chief Ben Bernanke and his statement at the Capitol Hill.
( If he makes any bullish comments, I won’t hesitate pulling the rug from under his feet !)
Almost 12 hours ago I had written how world markets had turned red when Bank of Japan came out with its economic forecast but no rate cuts. (12 hours? Feels it was just 12 seconds ago!)
Trust the Fed members to spoil that bearish party in world market.
U.S. stock future have turned highly positive after the Fed’s New York president, William Dudley commented that any decision about tapering the QE3 would take a few months’ time.
World markets, which were earlier trading in the negative , instantly perked up and turned positive.
And now, markets will wait for the Fed chairman, Ben Bernanke to endorse the same sentiments about NOT tapering QE3 in a hurry.
Please remember, these are markets’ expectations, not necessary that Mr. Bernanke will fulfil these expectations.
Any hint from the Fed chief about having any thought to taper QE3 will make markets tumble down ( and make me jump up with joy *hehe*)
10 AM EDT is the time when world of stock markets will stop in its tracks as Mr. Bernanke starts his testimony today before Congress.
For traders, investors and everyone having anything to do with markets, the Earth will stop revolving . It will resume its orbiting only after Mr. Bernanke’s testimony is over.
Going by what hints he drops- about tapering ( bearish) or not tapering the QE3 (bullish for markets), markets will take a trend.
(Me? I’ll be over the Moon if he hints about tapering QE3 measures )
So, keep your fingers crossed, wait for Mr. Bernanke to appear before the Congressional committee and see what havoc he causes in markets with his comments.
Expect U.S. markets to open positive but trade with high volatility till The Fed chief has made his statement.
Good luck, have fun and have a great day in markets today!
I’ll perch up on my usual fence seat and enjoy the action
If something big happens, I’ll be back with more updates.
See you later!
