Yesterday afternoon, it was declared that Janet Yellen (about whom, trust me, I’ll be doing an acerbic post later today) will be the new Chairhuman of the Federal Reserve. The ES started climbing, and even though I had 118 – – yes, you read that right – – 118 short positions, I was delighted. Why, Tim? Why would you feel this way? Well, young Sloper, I’m glad you asked: it’s because I wanted the ES to push back up to its broken trendline. It did so:
I imagine The Powers That Be made this announcement in a desperate bid to push prices back to lifetime highs, since the notion of a permadove like Smellin’ Yellen was supposed to give all the permabulls out there nice thick boners. Well, it did manage to get the ES a dozen points off its low, but let’s just say it didn’t stick.
What’s the significance of retracing to a broken trendline? Oh, I dunno.
It’ll be interesting to see what the Fed Minutes do for (or to……..) the market today. To be clear, I remain paranoid/cautious, and thus have taken profits on about twenty positions. But I’m going to start searching anew for more opportunities.
I’ll close by sharing a little song I’d like to dedicate to Ms. Yellen. If you’re at work, crank up your speakers and let your co-workers sing along.