The market traded up all day long closing with a gain of 1.63% (NDX-100), it is the best closing for the Nasdaq since 2000. Today´s trading environment was extremely difficult for our strategy but we maintain our preference of shorting on spikes. The WTI finaly traded down closing with a loss of 1.76% at 104.64. The upward move on the NDX-100 started last night after Mr. Bernanke´s speech in which he stated the FEd´s accomodative policies will stay for some time. It is mind-blowing how he changed his mind, as 6 weeks ago he mentioned the opposite of last night, Mr. Bernanke needs to make up his mind. The market´s reaction to his comments are irrational. Bernanke expressed that QE will not be so quickly dismounted as the employment situation is not well and there are signs of inflation. This backdrop translates into a weak economic scenario resulting in down markets. Instead the market roared after his comments!!!
Today´s Profit USD 255 (Portfolio Size: USD 25,000)
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- US Dollar and Fed Policy – Perception vs. Reality (forextv.com)
- Bernanke Is Losing Control of the Fed and the Markets (gainspainscapital.com)
- Bernanke’s sisyphean task to separate tapering from rate hike views (blogs.marketwatch.com)