Jerry Samet
12-12-2012, 11:22 PM
The market started off with a solid gain today but sold off during Bernanke’s press conference. Volume was mixed, a bit higher on the New York and down on the Nasd. This produced a stalling day on the SPY. The Fed will now buy another $45 billion a month in Treasury bonds along with a similar amount of mortgage bonds. The market closed mixed but at the lows of the session, showing weakness. Leading stocks were mixed also as the new leaders index declined .54% on lower but slightly above average volume. The old index was badly broken and had become essentially worthless so I put a new one together. The leadership is thin in this rally attempt so it was much harder to find a good cross section of quality stocks. The new index gas 19 stocks in 16 different industry groups. This is fewer stocks than I usually put in but I really had to dig for these and it is enough for an index. It hit a new high yesterday and should give us warning of leading stocks breaking down. The Fed is now monetizing the debt and will print as much money as they think is required. The dollar sold off and will likely continue in the future. It is hard to see how this will not produce significant inflation in the next few years. Jerry