Thursday, July 11, 2013

Chairman Bernanke Pumps Global Markets Higher

Chairman Bernanke pumps global markets with his comment that "the Fed will remain accommodative for the foreseeable future." As soon as those words hit the tape, the global markets immediately reacted in force. The dovish Fed head sees his number one mandate as pumping the stock market higher. The dollar immediately dropped and the dollar index is a touch under 83.0 this morning falling from 84.7 the last few hours. With the weaker dollar, the euro jumps higher and the dollar/yen drops. Gold, silver, copper and other commodities catapult higher on the weaker dollar, up almost +3% this morning. Gold was up almost 50 bucks. WTIC crude oil hit 107 and now backed off to 106. The S&P futures jump higher as well and are +16 at this writing less than three hours in front of the U.S. open. The Dow futures are +140. There is no doubt that free markets are a thing of the past, if they ever really existed. The action last night into this morning clearly illustrates how the Fed and other central bankers control the markets. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.


  1. It's good to have friends at the FED!
    I remember that issue of the minutes prior to their official release with 24 or 48 hours ....
    Does somebody know how can I become Ben's friend ? :)?
    I'm not an important guy, I'm not in international diplomacy, a big investment bank or some financial committee....
    I'm just a little retailer :)

    p.s. FU Ben and F your status as being 'student of the Great Depression' ! (guess now he would not want to be my friend :) ....)

    1. You are exactly correct V. The insiders were buying yesterday afternoon so they received the memo. It is interesting to see only +16 spu's, however, all the prior pumps are from 20 to 30 handles, and from smaller S&P levels. The Fed keeps pumping the stock market higher but each time the oomph appears to be waning. The Fed receives 16 handles for showing their cards and placing themselves all in.

    2. What's the problem sonny, don't you like free money, v.?
      take one lesson from an oldie (and goldie) guy: when trading, when u'r in the market, forget about morality and stuff keep focusing on WHAT IS, not what you think IT SHOULD BE (the market doesn't really care about your thoughts).

      keep yourself in reality, ok? kiss'ya.

      GS guy

    3. Always trade the market in front of you not the market you want to see. Watch JJC 39.47.

    4. Thank you both.


  2. KS, "Always trade the market in front of you not the market you want to see."

    Thanks for the reminder. Its easy to start trading a market that hasn't come into existence yet.

    Thanks for the blog and for all the comments.


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