(Stocks were rattled Thursday after hours due to the announcement that the Fed was raising interest rates to 0.75 from 0.50.
"The Fed has been supporting the banking sector since the crisis with extremely low rates. "It's a wake-up call that easy money won't be around forever. That's not good news for the banking sector and the U.S. banking sector, especially," said chief market strategist Howie Feltersnatch.
Rumors that the nude photos of Snooki (from Jersey Shore fame) were fake or an elaborate publicity stunt crafted by Snooki herself; sent US futures lower and put Asian markets deep in the red. European Indexes did recover from the news.
"Europe has a much more relaxed stance on topless women; we were also the first to perfect the art of tabloid reporting. We expect this to have little to no affect on our markets," said Nigel Toughskin.
On Friday, US markets opened up weak. Investor confidence was boosted after Tiger Wood's speech, showing signs that the economy may continue to recover with Tiger Wood's sexual rehabilitation and his return to Buddhism, which could also help the Asian markets rally further.
US markets held their gains into the close on the news that the Fed was raising interest rates to 0.75 from 0.50, which many Investors say shows strength in the banking system.)
If there is one thing we should all learn from this past week, it is that "THE NEWS DOES NOT MATTER". Read some EW stuff, basic TA books or some of Gann's stuff going back to the early 1920's! They all tell us the same thing.
I saw many good risk/reward setups on the short side this week, and got stopped out of all of them. That is very frustrating, but I have a plan and I'm sticking to it. What is disturbing to me is that many people do listen to the news and trade off of it. My BFF, (and fellow ghost hunter) Ricky Magnuson, called me Thursday night and told me of the news that the Fed was raising rates, he said he was going all in FAZ and TZA after hours. Well he got crushed on Friday; and would be much better off if he learned some TA and traded off of what he believed his charts were telling him, not what others say or what he hears on the news.
How many times have we heard, "It's all about the dollar," or "wait till the fed raises rates." Sure these do factor in to the big picture, but I try to avoid all the noise I hear on TV. The dollar has been rallying since Dec, my short positions have not… The fed's announcement didn't help them either. I guess it's was all baked in, so why pay much attention to it.
A lot of times, this sort of "news" only produces an EKG wave setting up a bunch of bears for a nice trap, and freaking the crap out of the bulls that went long that day. The market is going to do what the market is going to do, and it wanted to go up more.
Lastly, I know how financially hard it is for newspapers and the media right now (I have a cousin that works for one and is always fearful of losing his job). If any higher ups at the NYT, CNBC or whatever are reading this; if you need to cut costs, fire some of your more expensive reporting staff and hire me. I will work cheap (free beer or gas money once I get the Fiero), you can contact me at nathainel.goodwin@yahoo.com. I can come up with an endless supply of dumb “news” reasons the market is going up or down which we should probably all ignore.
Here is one chart I trust more than the news.
