August 5, 2013
Weekly Market Outlook
By Keith Schneider
Whether organizers were inspired by the current great Bull Run on Wall Street or the traditional ritual hosted in Pamplona Spain is unknown. What is clear is that entrepreneurs here in the US are unleashing their own version of "Running of the Bulls", starting in Richmond VA, on Aug 24. Regardless of whether you are one of those brave souls risking life and limb as a runner in Richmond, or a latecomer to Wall Street's long in the tooth bull market, one must be agile and quick on their feet to avoid getting gored, or worse.
The early part of the week the markets waffled as it waited for the results of the Fed meeting and more importantly, the employment numbers. The Fed chairman's comments that the economy was moving along, but more slowly than he would like, was greeted by a significant bond rally which was confirmed by the employment data. It showed that unemployment numbers have dropped to the lowest numbers since the 2008 meltdown, but that was mostly attributed to the unemployed giving up looking for jobs.
The equity markets took this muddy picture as just what it needed to head to new all-time highs. By Friday's close it drove the long end of the yield curve to some its highest levels in years. Sentiment as measured by VIX, the volatility index traded on the CBOE, is trading beneath the lower end of its trading band indicating that things might indeed be overheating a bit. One can't fight the tape though and ultimately price rules.
For our current outlook check out this weeks video...
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