18 December 2013

SP 500 and NDX Futures Daily Charts - Year End Rally as Fed Spreads Holiday Cheer

"I am not alone at all, I thought. I was never alone at all. And that, of course, is the message of Christmas. We are never alone. Not when the night is darkest, the wind coldest, the world seemingly most indifferent. For this is still the time God chooses."

Taylor Caldwell

Today's action was all end of year window dressing and bonus pumping, triggered by the 'tiny taper' from the Fed, in which they pledged to reduce the rate at which they are expanding their balance sheet and handing money over the primary dealers at a slightly slower rate.

Low interest rates were unmistakably pledged for as far as the eye can see. And this is probably why stocks rallied, other than this is the time to boost financial asset prices to maximize those bonuses.

Have a pleasant evening.