The Dow fell 2.2% this week on worries about the consequences of the Federal Reserve’s bond-buying initiative and renewed concentration on Europe’s sovereign-debt issues. On Friday, stocks slid as concerns were reignited that China could be moving toward further tightening of its monetary policy. The recent resurgence of the sovereign debt situation in Europe coming back into play didn’t help matters either. At one point yesterday, there was a delay in the QE2 repurchase and there was actually a rumor that grew legs, that implied the Fed had some ‘new data’ that hadn’t been disclosed. The cause for the delay was evidently some technical issues and it began at 11:30 AM.
It’s a tough market to navigate, on Thursday the dollar was very strong yet oil and materials shrugged it off and rallied, yesterday the dollar was weak at the opening yet the commodity sector was ravaged, especially the agriculture space. Go figure.
Walmart evidently just did a ‘secret’ study that showed a 0.6 percent price increase in just the last two months, according to MKM Partners. At that rate, prices would be close to four percent higher a year from now, double the Fed’s mandate. Keep in mind Bernanke didn’t know we were in a Recession until we were eyebrow deep and almost in a Depression, but he’s the expert. I’m feeling all fuzzy with beardo pulling the strings. I still like ags and oil, but on dips.
Is this the start of the Big Kahuna pullback that everyone is waiting for? If the dollar wasn’t burning and rates weren’t at at zero, I would say quit possibly yes, but where else are you ‘gonna’ go? The beat goes on.
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