Courtesy of John Nyaradi.
I predict a rise for stock markets after the Fed tapered itself
The Fortune Teller Speaks:
I predict that stock markets will go up today based on yesterday’s reaction to the Fed tapering itself.
All Eyes on Wall Street:
Investors appear overjoyed that the Fed will begin tapering its bond purchasing program by $10 billion per month, despite having declined numerous times when a taper appeared eminent. Perhaps, although not likely, stock markets are actually ready to get off of the Fed gravy train, but I would not hold my breath. Although stock markets are strange and confused, I do not expect a Fed free world to be too pretty in the long run. That being said, investors will likely carry today’s stocks into the green once more.
Today we also have weekly Jobless Claims Report, Existing Home Sales Report, Leading Indicators Report, and the Philly Fed on board, so investors have plenty to absorb today.
Hindsight is a Beach and We’re Playing on It:
I was incorrect both Monday and Tuesday, and yesterday stock markets rose substantially. The S&P 500 (NYSEARCA:SPY) rose 1.66%, the NASDAQ 100 (NASDAQ:QQQ) rose 1.16%, and the Dow Jones Industrial Average (NYSEARCA:DIA) rose 1.88%. Gotta love it when the Fed moves. Like I always say, I don’t care where the stock market goes, just as long as we’re right. Better luck today.
Fun Fact:
According to MarketWatch, most Americans pay their auto loans before credit card bills or their mortgages. At least we can live in our cars if things get really bad.
May the Bulls be With Us:
I predict a green day today, 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.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
