06 November 2013

SP 500 and NDX Futures Daily Charts - Bernanke in Twitterland

We start hitting the substance of the economic reports with GDP tomorrow and Non-Farm Payrolls on Friday.

The Twitter IPO looms over the market action as well as the real economy, and I have a sneaking hunch that the Street will support stocks until Twitter gets shoved out the door tomorrow, and perhaps for a few days after.  As you have probably heard it is coming out on the higher side of $26 per share.   Let's see how it does in the market.

I am not in stocks here, but am fighting an urge to get something going on the short side until we get a better idea if they can keep this pig in makeup for the year end ramp at least.  Twitter may give us some insight.

This market is built on a foundation of meringue, supplied by those little elves at the Fed, who are pumping huge sums to Wall Street while Main Street languishes with little excess buying power and a floundering median wage.

While the Fed does not control fiscal policy, they have a huge amount of leverage as a primary bank regulator that they are not using well.

Have a pleasant evening.