
The buzz today was that financial media markets were higher for the 19th consecutive Tuesday. Other than that, there was little news today except of the launch of the Xbox from Microsoft, which does everything including playing the game solo with you as a spectator.
Two voting Fed spokesmen were on the campaign speaking circuit Tuesday. First up was Fed Governor Bullard who supported QE policies even urging his European counterparts to do more. Next up was Fed Governor Dudley who fretted about the economy’s ability to endure higher taxes and lower government spending which could impact further QE. Dudley is also worried about any overreaction to any policy “normalization”.
On Wednesday its Bernanke’s turn to take a swing at the QE piñata. Shortly thereafter, Fed Minutes will be released. And speaking of the Fed, U.S. taxpayers should be aware that QE has benefitted foreign banks to the tune of $1 trillion. Does this fit in with the Feds mandate to lower U.S. unemployment?

The dollar (UUP) was flat while the gold (GLD) and silver (SLV) rallies from Monday were undone as both metals fell once again Wednesday. Commodity tracking ETF (DBC) was weaker as were grains (JJG) and oil (USO).
Leading stock sectors were led by retail (XRT) and consumer discretionary (XLY) as Home Depot (HD) reported good results. Financials (XLF) also rallied along with REITs (IYR) and healthcare (XLV). Alternative Energy (PBW) has generated some positive returns as noted in this short video. Tech (XLK) held up reasonably well. Overseas markets were mixed with Europe (IEV) higher while Emerging Markets (EEM) was mixed. Bonds (TLT) were mixed to flat.
Volume was once again quite light and breadth per the WSJ was modestly positive.


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Existing Home Sales data on tap for Thursday and this is the season for home buying. Therefore the data should be good especially with interest rates this low. Bernanke will take his turn to do his thing before congress which precedes Fed Minutes. The Fed continues to promote how transparent they are so what could be in the minutes we don’t already know?
Let’s see what happens.
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| Commodity | Quote | Change | Change % | NY |
| Gold | 1,387.50 | 9.80 | 0.71 % | 06:55 |
| WTI Crude Futr | 95.52 | -0.66 | -0.69 % | 06:42 |
| Index | Quotes | Change | Change % | Local |
| CRB | 287.92 | -0.86 | -0.30 % | 05/21 |
| US Dollar | 83.77 | -0.10 | -0.11 % | 00:41 |
| Index | Quotes | Change | Change % | Local |
| VIX | 13.37 | 0.35 | 2.69 % | 05/21 |
| MSCI | Value | Daily | MTD | YTD |
| Brazil | 2714.53 | 0.33 % | 0.02 % | -0.48 % |
| Russia | 778.95 | 1.10 % | 2.38 % | -3.54 % |
| India | 439.66 | -0.82 % | 0.89 % | 2.24 % |
| China | 61.90 | -0.68 % | 2.03 % | -1.51 % |