Friends,
We were enjoying a nice 100 point plus move in the Dow today when traders decided that they did not like the Fed announcement for some reason. What changed? Well, not much. No change in rates until 2013, job market and economic activity slightly better, core inflation below the Fed’s target and Europe is a big risk. Hmm, I don’t see anything earth shattering there. I am not sure what the market wanted (QE3?) but evidently it wasn’t enough as the Dow Jones Industrial Average ended up falling 66 points to close at 11,954(back under 12,000 again). The S&P 500 was down 10 points to close at 1225 (right at intermediated support). Gold was pummeled again as the precious metal fell $33 to close near $1634. Oil was up, but only because of nonsense in Iran, as WTI finished the day up $2.28 near $100 per barrel.
This was a disappointing reversal on a day when there was no real reason for stocks to drop. We’ll see how the rest of the week goes, but today seemed like a buyers strike in the last hour and a half. Remember, this market has no memory from day to day so I’m not counting out a visit from Santa just yet, but it sure looks like the jolly ole elf wants to take this year off, doesn’t it? Perhaps traders mistook Dr. Bernanke today for Santa (hmm, he does look a little like him) and were unhappy when all they got was a lump of coal.
We’ll see how the rest of the week goes.
Have a nice evening everyone.
