OMG, we may taper someday. Enough already, really, enough. You really need to worry when the Fed actually raises that thing called the fed funds rate. This is probably two years out, unless the unemployment rate drops to 6.5% which is their target. However, there are whispers that they may want their target for unemployment to be more like 5.5% or 6%. You will probably see flying unicorns and condos on Mars first though. I always thought the definition of “full employment” was around 5-5.5%. This “new” target, if implemented, gives Yellen unlimited access to the orgy machine. Stocks go higher. Period.
Gold got hammered and broke some support today because of this, and the dollar also caught a pop. Stocks became afraid and sold off. The market knows we will taper, we’re selling off because we just hit new highs and that is what often times happens when you hit historic highs.
“Alex, I”ll take stocks that start with Z”
Check these out
$ZHNE was in a wedgy for the last month and exploded 43% today
$ZNGA finally popped through some key resistance on twice its normal volume.
On the downside, $Z has fallen through the trap door for now. The 200 day sma is down around 67.50. It looks real heavy and is very shorted, right now the bears are winning.
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