The much-anticipated FOMC Meeting Announcement reported Policymakers describing the pace of economic expansion as modest, The economy continues to need QE support, therefore a tapering of the bond buying stimulus is not imminent. The notion that economic recovery is slow and the FED needs to support it, leads us to believe that our economic state is far from well and reaffirms our view that the stock market is in a QE induced bubble. IT seems that markets participants don´t share our point of view as they pushed the NDX-100 to the all time high level of 3110 before retracing, closing 0.16% . On the Energy front, inventories came in higher than expected, but closed positive taking in stride the Fed´s comments.
Today´s Profit USD 710 (Portfolio Size: USD 25,000)
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- FOMC Reveals Bernanke Keeps QE Juice Flowing, Taper Should Come Later This Year (forbes.com)
- Oil recovers to over $105 after earlier sharp fall (heraldonline.com)