09 April 2014

SP 500 and NDX Futures Daily Charts - Fed Minutes and Scalded Cat Trades

The Fed minutes came out at 2 PM, and their dovish tone had stocks soaring higher, running the bears out of the new wash cycle.

Earnings will now start playing a more important role in market movements, but as I noted in the intraday commentary the HFT algos are driving a significant portion of daily stock volume. So the trade has a very technical tinge.

I hear that Goldman says that there is a 67% chance of a ten percent correction in stocks over next year.

I think if we get the right even, that ten percent is going to seem like a blip, unless the Fed pulls out all the stops to save their friends.

Bank earnings start coming in on Friday.

Have a pleasant evening.