Here comes Santa Claus!
Right down Santa Claus Lane!
(Gene Autry and Oakley Haldeman)
Or for you modern day crooners, Here Comes Bernanke Claus.
Everyone thinks Ben will fire up the sleigh, er, helicopter thanks to the minutes of the last Fed meeting. They discussed it but they never said they'd do it. Who cares? Buy stocks!
But really, was there anything new? They already said they'd be standing by to meddle, er, stimulate the economy.
I think it was just a ploy by the market to shut up the key reversal crowd - you know, the ones that got super excited after yesterday's gap up, close lower move.
Tom McClellan (yes, that McClellan) said this (used with permission):
Yet the market has the mission of continuing the uptrend into November, according to the Democratic Presidential Cycle Pattern and my eurodollar Commitment of Traders leading indication. To do that, the market is going to somehow need to restore fear and doubt into the hearts of traders in order to have the fuel for the uptrend. One good way is with a key reversal bar that gets everyone talking about how the market has topped, the sky is now falling, and we are all in fact doomed. Once that is accomplished, the uptrend can resume.
The man is a genius.
You set me up to knock me down
And leave my shattered pieces on the ground
- Lifehouse - Wrecking Ball (2010)
I'll close with a quote from this morning's Quick Takes Pro:
We are not going to get overly excited over one bad day but unless the central bankers start to put other people's money where their mouths are this market does indeed look very heavy.Oh, did I mention we are long gold?