The Two Concerns I Have
Tuesday saw 94% of the S&P stocks losing value along with 97% of the Nasdaq 100 stocks declining. Wednesday essentially the opposite. Short-term oversold to short-term overbought. And that’s the way markets work.
Today the market is slightly overbought. The Fed sent a major message that they’re going to step in whenever needed just as they’ve done since 2009. The two concerns I have are as follows; the continued weakness in Europe spreading globally. It’s real. The second is any inkling that the US will place boots on the ground in Syria. Obama is now under extreme pressure from the military, many advisors, many past advisors (including former CIA Director Panetta), along from his own party, plus a scathing editorial on his policy written on Tuesday by the Washington Post. If he changes his policy, it will overshadow Fed activity. Therefore clear sailing ahead from todays Fed move is not a sure thing that prices are moving higher. But it’s a good sign and should global political and economic events become quieter, this very long running bull market could continue running longer than anyone expected.