Late yesterday the Wall Street Journal released a story “Fed Moves Closer to Action” by Jon Hilsenrath, market participants took dramatic notice. After reading the third comment from our internal sources that this may be a leak from the Fed for action we thought it worth mentioning to you. I bet you can see when the story hit the airwaves. Remember summer equals lower volumes and exaggerated moves.
UPDATE–Before this post was able to hit your in box, another story, this one from the New York Times is running a similar article. This means more credibility to the possible move, correctly or incorrectly.
S&P 500 1 minute chart
We will see, but there is certainly reason to believe that the FED often leaks/speaks through reporters. If this story turns true, we would believe this could be a positive for capital markets for a time, but the attached chart shows the fatigue in such sugar injections.
We feel the US is ready to take the training wheels off and ride on our own.
Have a Great Day!
PS Remember today is technology upgrade day at JK Financial !