Thursday November 14, 2013 07:49
Yellen’s prepared statement was released late yesterday afternoon; in it, she defended the Fed’s easy monetary policy and suggested the economy, albeit better than in 2008, I sure hope that was a tongue in cheek remark, required further assistance to advance. AKA, tapering was not on their immediate horizon. Commodity bears, many who had left for the day, scrambled with their smart devices to cover some of their short exposure and gold popped some $14 near 5 pm. The global economy is fighting a serious deflationary threat and the only ammunition that appears to be available is continued monetary easing. Subtle signs, such as US retailers now opening on Thanksgiving Day, not black Friday for the annual Turkey blow-out sales suggests an anticipated weaker consumer and holiday season. As I said before, this monetary expansion may not be enough to take the hard assets to a new bull paradigm, until inflation becomes apparent. The technicals look terrible and a stepped-up momentum ladder, first through $1,292 then $1,312 and then $1,328 needs to be realized, in quick order.