MARKET COMMENT
February 14, 2007
Investors were looking for a catalyst and Bernanke delivered by not saying much of anything new.
I’ll bet the Fed has focus groups that gather
about and test various presentations that the Chairman could use to either
“soothe” investors [a much mentioned description the past few days] or throw a
“change-up” to scare them.
Unlike
Chrysler, he’s too nice a guy to do that on Valentines Day.
So Bernanke said
basically that the Fed would remain vigilant toward keeping inflation
contained.
What else could he say?
Relieved bulls jumped on his ordinary comments and bid
stocks up.
What else are they going to
do with all that liquidity they’re sitting on?
Bond investors were relieved and took the 10 year up to the previous
resistance area.
That’s about all one
can make of that period.
A couple of tech subsectors of
note included Internet and Semi’s.
Then there’s always a couple of eclectic sectors to pump observe.
It’s a big investment world with many fast moving
markets.
The usual suspects are strong
and seemingly bullet-proof.
Is Ben the “catalyst” the market needed?
Seemingly so; but, remember the week ends
tomorrow with more economic data and perhaps some end of week
profit-taking.
We’ve mentioned in the
past that bull markets tend to have, barring contradictory news, weaker Friday’s
and Monday’s and strong mid-weeks.
That’s
been the pattern here for most assets from gold to stocks.
Now my internet connection died this afternoon while getting
ready to write this post which is why it’s late.
I was pretty frustrated earlier, but my wife
just told me that it was beyond my control because “Mercury had gone retrograde”--so…
Have a pleasant evening.
Disclaimer:
Among
other issues, The ETF Digest maintains positions in: SPY, QQQQ, MDY, IWM, GLD,
SLV, DBP, FDN, PPA, PHO, EFA, EEM, ILF, EWZ, EWW, EWJ, EWA, INP and EWM.