Stocks Get Injection from the FOMC
Filed Under Market Commentary |
Liquidity continues to be pumped back into the banking system. The Federal Reserve contineus to do a patch work job. Flooding the market with liquidity does not solve the housing/mortgage market woes. At any rate, stocks zoomed higher on higher trade marking Day #1 of an attempted rally. Volume was higher than Monday but was lower than the 3/4/08 session’s volume where we saw the index inch higher. Not an incouraging sign for the market as a whole.
This market definitely needs to show some accumulation before I start believing in this new attempted rally. At the moment, VIX and VXN are not pricing in enough fear at our most recent lows. In addition to the VIX and VXN the amount of New Highs to New Lows continue to signal, New Lows continue to dominate New Highs that we have not seen our bottom.
I simply can not wait for our next bull market. The next bull market will produce many stocks that will run 1000% or more! But, in the meantime we are 5 months into a bear market where these usually last 8 to 9 months. I would tread carefully and stay afloat for the next bull market.
Market Speculator
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