Amid the House of Representatives debating the new Stimulus package stocks moved higher on the Federal Reserve keeping rates unchanged.

Volume ran up in the first 30 minutes of trading as many on Wall Street were begging the Federal Reserve to pump more money into the system.  Stocks were in a tight range leading up to the Federal Reserve Rate Decision release as volume slowed.  At the end of the day Stocks followed through, but is this just another follow-through day that fails?  It appears it may as the IBD 100 was a lagging index and the put/call continues to be near lows.  However, this does not mean we can not move higher, but I do believe we aren’t starting a new bull market.  The market’s action is based too much on what the government is going to do and government stimulus always fails.  It takes a fundamental shift, a market outlying event to get the economy going.  Unfortunately, we’ve had record borrowing from the Federal Reserve, record debt, and the money supply being inflated at historic rates.  It is time to be cautious and take what is given because this market is far from being a healthy one.

Market Speculator

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Last 5 posts by Market Speculator

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