Stocks Drunk On Fed Reserves

I predict a stock market rise after yesterday’s Fed induced stock market bonanza  

The Fortune Teller Speaks:
Stocks will likely rise today on the tails of yesterday’s rise; investors seem largely Fed driven.
 
All Eyes on Wall Street:
All eyes on Wall Street are waiting for the Fed meeting tomorrow, in which the Fed and Dr. Bernannke will lay out future easing and tapering plans. Yesterday investors had a hope rally for more Fed intervention; one can only imagine what a Fed free stock market would entail. So, today is likely another party/waiting game for what the Fed will do next: will Dr. Bernanke show up and deliver what investors want to hear or are we looking at tapering ahead?  Judging by yeseterday’s performance, investors are hopeful at the very least for more easing.
 
We are also due out for new Consumer Price Index, Core CPI, and Homebuilders Reports today, all of which have the capacity to add to the overall trend in stock market moves.
 
Hindsight is a Beach and We’re Playing on It:
Yesterday we got crushed, as I predicted a down market and stock markets went up. The S&P 500 (SPY) rose .63%, the Dow Jones Industrial Average (DIA) rose .82% and the NASDAQ 100 (QQQ) rose .71%. Like I always say, I do not care where markets go just as long as we are right. Better luck today.
 
Greed or Fear?
Oddly enough, stock markets seem largely driven by greed and fear, as investors appear greedy about wanting more easing while also fearful that the tapering will start. We will know more tomorrow.
 
Fun Fact:
Tech giant Google (GOOG) just bought its 8th robotics firm. What is Google up too next?  Check out this video to find out more.
 
May the Bulls be With Us:
I predict another Fed induced haze for the stock market. May the bulls be with us.
 
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.
                                                                    
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