April 8, 2012
Weekly Market Outlook
By Keith Schneider
Current estimates of the fed stimulus year to date are at 2 trillion US dollars, so please pay your taxes on time as someone has to foot the bill. One might conclude that some of that money might have inadvertently snuck into the US Equities market. Hence the 10-15% rise in Equities YTD depended on whether the stock index you refer to had an IPAD or two in it. Retail sales are strong, unemployment steadily improving along with consumer confidence and it’s almost seems like a real recovery is at hand. The question is what happens if the fed takes away the feeding trough.
Can the market take off on its own without the wheels of the printing press working overtime? With the specter of the fed taking off the training wheels, Gold plunged, rates rocketed, and stocks slumped all to be expected. Smart money not being fooled by the Greek Drama focused on the monetary pulse and with it potentially returning to a more normal state hence reacted accordingly. The question remains as to whether the initial knee jerk reaction is the start of an important turning point or just a test of a trading channel. Let’s check out this week’s video for critical chart points...
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