Will Janet Yellen’s testimony boost stocks?All Eyes on Wall Street:
All eyes on Wall Street will be focusing on Janet Yellen and her testimony to the US House today, and whether or not she will change her tapering policies. All eyes on Wall Street have completely lost it to the Fed before, and all eyes on Wall Street could lose it again today, regardless of what she says or what she does, easing or no easing, tapering or no tapering. Nobody knows how the stock markets will react to the Fed because there simply is no rhyme or reason to it; illogical is the new logical in today’s Fed up world.
We are also due out for the NFIB Small Business Index Report at 8:30 AM EST and the Wholesale Inventories and Job Openings reports at 10:00 AM EST, although I doubt any of these reports will carry as much clout with investors compared to Yellen’s testimony.
Hindsight is a Beach and We’re Playing on It:
Today is our first prediction of the week, and the bulls appear to be in charge, although the gusto appears to be fading. The S&P 500 (SPY) rose .16%, the Dow Jones Industrial Average (DIA) rose .05%, and the NASDAQ 100 (QQQ) roes .54% yesterday. The bulls are getting ever closer to erasing past losses over the last few weeks, but it appears again that they are running out of gas.
Your Stock Forecast for February 11th, 2014:
I predict an up day for stock markets today. Today is really a craps shoot because we never do know where the markets will go as long as the Fed decides to speak.
Exchange Traded Fun:
Since we are going long today, the following ETFs could be of use to us:
Long 1X S&P 500 ETF: SPY
Long 2X S&P 500 ETF: SSO
Long 3X S&P 500 ETF: UPRO
Long 1X Dow Jones Industrial Average ETF: DIA
Long 2X Dow Jones Industrial Average ETF: DDM
Long 3X Dow Jones Industrial Average ETF: UDOW
Long 1X NASDAQ 100 ETF: QQQ
Long 2X NASDAQ 100 ETF: QLD
Long 3X NASDAQ 100 ETF: TQQQ
The Long and Short of It:
The truth of the matter is that a Fed day is a confusing day and I hope that we turn out on top.
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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