The Fed did and said nothing today about Russia (it’s small), oil prices (transitory), interest rates (data dependent) and the economy (growing modestly).
Most interpreted the Fed and Yellen’s boring news conference as dovish. This allowed bulls to rally stocks sharply and even the week’s decline was taken back. The bulls will probably spin all this as a reason to launch the much delayed Santa rally.
The most shorted sectors (energy and emerging markets for example) rallied the most as bulls are overjoyed that happy days are here again.
Meanwhile the Russia launched another Ruble saving plan through the Russian Central Bank as allowing credit institutions to delay marking debt to market which then allows them to mark debt to cost. This seemed to work for now as the Ruble and Russian stocks rallied more than 10%.
Elsewhere in Greece (them again) the current leader lost his election throwing the government into chaos once more, but that’s for another day…as in January. Obama got up this morning, looked in the mirror, pondered who he could piss-off today and decided to end over 50 years of Cuban isolation.
So put you worries aside folks and go shopping. Yellen said these large drops in crude oil prices were a gift to American consumers and brushed-off likely troubles for energy producers and their employees.
Leading market sectors higher included: Everything (this is getting easy now).
Leading market sectors lower included: Bonds (TLT), Euro (FXE), Yen (FXY) and Gold (GLD).
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was heavy as shorts were squeezed and Yellen minimized any global fears. Breadth per the WSJ was positive.
It’s fascinating given the negative news backdrop that the Fed Chair and after the release of their decision can show up for a new conference and say nothing of any value. Markets rallied on that lack of substance but nothing is what bulls wanted to hear evidently. In so doing they hope to launch the Santa Rally bulls have come to expect as a given.
Thursday the Jobless Claims, PMI Services Index Flash, Philly Fed Survey and Leading Indicators will be featured.
Let’s see what happens.
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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio"
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||55.90||-0.03||-0.05 %||16:20|
|US Dollar||89.23||-0.04||-0.04 %||16:43|
|Brazil||1662.409||-2.37 %||-19.59 %||-25.05 %|
|Russia||341.999||-12.20 %||-35.77 %||-56.54 %|
|India||478.024||-2.66 %||-9.46 %||17.36 %|
|China||62.711||-1.19 %||-3.95 %||-0.62 %|