MV Weather Report: Bernanke Lifts Market's Clouds
Rain or shine, we reivew the day's biggest stock stories.
During a question-and-answer session at the Brookings Institution, Fed Chairman Ben Bernanke said, "The recession is very likely over at this point."
The fed chairs statement combined with surprisingly strong retail sales numbers thanks to a boost from the "Cash for Clunkers" program led to another new high in the stock market.
The S&P finished the day higher by 0.31% to 1052 making a new year to date high of 1056.
Money flowed into technology and agriculture stocks as Baidu (BIDU), Research in Motion (RIMM), First Solar (FSLR), Potash (POT), Monsanto (MON) and Mosaic (MOS) all traded higher on the day.
On today's Buzz and Banter, Professor Jeff Cooper gave his thoughts on the low volume on the S&P 500 and where it could head from here.
"Market volume remains at historic lows despite the end of the summer break AND 80% of that volume is in select financials.
"Yet the market churns higher, rinse and wash, wash and rinse.
"Do robots need a change of underwear?
"This time is different alright--volume has been vaporized by 30% since the last rally when volume picked up on the stab down of start September.
"When I cut my teeth on the trading game, the rule of thumb was volume precedes price. Can the market break higher from what in my opinion is a pivotal inflection point in the S&P on this low volume?
"Checking the Square of 9:
"Today is 90 degrees from S&P 666 just as the March low was 90 degrees from 666.
"We are 3 revolutions of price up from the 666 low PLUS a 90 degree overshoot.
"We are 540 degrees (true square or cube of 90 degrees X 6 sides) from the Bear Stearns shot over the bow of the USS Crisis.
Click to enlarge
Cooper raises some interesting points on the low volume in the market. However, what I find the most interesting from today's action is on the one year anniversary of the Lehman collapse, the chief of the Federal Reserve declares the recessions over...
Well that's all for tonight, I have a lot of work ahead of me since I am the fattest guy in the office and therefore in charge of the official Minyanville employee weight loss challenge.
Have a great night!
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