Fed raises rates, indices mixed.
The reaction to the fed rate hike was typical as the indices shot up sharply, then down before then ending relatively flat. The Dow and the Nasdaq ended the day up slightly, while the S&P 500 and Wilshire 4500 were down.
Also typical are the days following the Fed-day reaction. Usually we see a reversal of the "overreaction". Since the result yesterday was rather benign, we certainly can't get a reversal.
The new "smart money" sentiment survey shows an amazing amount of bullishness (68%) and very little bearishness (8%). That is usually a good sign. Hopefully not too good. This chart is not the AAII Investment Sentiment Survey which is a contrarian indicator and still showing 30% bullish and 35% bearish. This one, called the Wall Street Sentiment Survey, should be taken more seriously.
Chart provided courtesy of www.decisionpoint.com
Oil was down sharply and the dollar fell slightly yesterday.
I just got back into town so I'm going to make these comments brief. I see no reason to change my short term bullish stance. At this point I am just going to rethink my S and I fund allocation. The C fund may be the best place to be right now so I may lighten up on the others. I'll try to pick my spot.
That's all for today. Currently 50% C, 20% S, 30% I fund. See you tomorrow.
The reaction to the fed rate hike was typical as the indices shot up sharply, then down before then ending relatively flat. The Dow and the Nasdaq ended the day up slightly, while the S&P 500 and Wilshire 4500 were down.
Also typical are the days following the Fed-day reaction. Usually we see a reversal of the "overreaction". Since the result yesterday was rather benign, we certainly can't get a reversal.
The new "smart money" sentiment survey shows an amazing amount of bullishness (68%) and very little bearishness (8%). That is usually a good sign. Hopefully not too good. This chart is not the AAII Investment Sentiment Survey which is a contrarian indicator and still showing 30% bullish and 35% bearish. This one, called the Wall Street Sentiment Survey, should be taken more seriously.
Chart provided courtesy of www.decisionpoint.com
Oil was down sharply and the dollar fell slightly yesterday.
I just got back into town so I'm going to make these comments brief. I see no reason to change my short term bullish stance. At this point I am just going to rethink my S and I fund allocation. The C fund may be the best place to be right now so I may lighten up on the others. I'll try to pick my spot.
That's all for today. Currently 50% C, 20% S, 30% I fund. See you tomorrow.
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