THE FED
Bernanke Says More QE May Boost Growth; Sees Diminished
Returns
(Bloomberg Business Week)
June 7 (Bloomberg) – “Federal Reserve Chairman Ben S.
Bernanke told lawmakers that further rounds of stimulus could
boost the economy, yet may have ‘diminishing returns.’”
Bernanke told lawmakers that further rounds of stimulus could
boost the economy, yet may have ‘diminishing returns.’”
THE FED
Stocks soar at the open
then drop when Chairman Bernanke speaks (CNBC)
“Stocks retreated from their highs Thursday after Fed
Reserve Chairman Ben Bernanke did not provide explicit commitment to additional
policy, disappointing investors who had been looking for clues about the
prospect for a third round of quantitative easing.”
But
not all Fed Governors agree…
THE FED
(Federal Reserve Board Vice-Chair) Yellen
Argues for More Fed Easing, Cites Europe Risk
"There are a number
of significant downside risks to the economic outlook, and hence it may well be
appropriate to insure against adverse shocks that could push the economy into
territory where a self-reinforcing downward spiral of economic weakness would
be difficult to arrest," she said in a speech prepared for delivery at an
event organized by the Boston Federal Reserve Bank."
That doesn’t sound encouraging!
JOBS
WASHINGTON (MarketWatch) — “The number of initial applicants
filing for unemployment benefits declined last week, the government reported
Thursday, but jobless claims remained at a level consistent with mediocre
hiring trends....First-time claims fell by 12,000 to a seasonally adjusted
377,000 in the week ended June 2, the Labor Department said. Claims from two
weeks ago were revised up to 389,000 from an original reading of 383,000, based
on more complete data collected at the state level.” Full story at:
MARKET
The S&P 500 finished
unchanged at 1315. VIX fell 2% to 21.72
today, Thursday. The market gave up its
gains in the last hour so perhaps the smart money isn’t willing to bet on a
rally. There was apparently much disappointment
that the Fed is not going to step in with more QE.
The market bounced from
the 1278 low as I suggested that it might.
In such cases there is always the thought that maybe that was THE bottom
and I am wrong sitting on the sidelines.
If that level doesn’t get retested, I will rely on the NTSM system to
signal a buy. That has not happened yet.
NTSM
The NTSM remained HOLD Thursday.
MY INVESTED POSITION
I reduced my stock
holdings to 30% (0% in stock in the 401k) at S&P 1358 after the SELL signal
on 9 May 2012. (See the page “How to Use the NTSM System” – the link is on the
right side of this page). I cut my stock
position to 15% on 17 May in order to maintain a 10% gain in a
trading/longer-term position I had in the QQQ.
