WASHINGTON (MarketWatch) -- The Federal Reserve is
considering a new kind of bond-buying program that would simultaneously try to
limit inflation, according to a report in the Wall Street Journal. The Fed
would print new money to buy long-term mortgage or Treasury bonds but
effectively tie up that money by borrowing it back for short periods at low
rates. Story at:
So did the Market rally today (Wednesday) because of the
technicals or the news? I don’t know;
but up is good.
The S&P 500
closed up 0.7% to 1353. The VIX dropped
9% to 19.1.
Sentiment at the
close Tuesday was just a whisker below a sell call. That high level of sentiment really doesn’t
give us too much hope for more straight up gains, so we may yet see a
correction, or some sideways action to cool the market down a bit. The most likely course is still the one I
wrote about yesterday – more gains and then a correction in a week or several
weeks. We’ll see.
NTSM
The NTSM analysis
remains HOLD today (again, regardless of the Sentiment indicator). It could still
switch to sell tomorrow if the market falls more than about 1.25-1.5% depending
on the volume.
MY INVESTED POSITION
I bought back into
the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct NTSM buy signal.
I remain 100% long in the long-term
portfolio (100% stocks in the 401k.). (See the page “How to Use the NTSM
System” – the link is on the right side of this page).
Just a reminder: 100%
invested in stocks is way too much for most rational folks. Don’t do it unless you have a high tolerance
for risk.
