Hello MarketClub members everywhere. Once again it falls on the shoulders of the Federal Reserve to keep monetary policy loose. With expectations of 4 rate hikes in 2016, we are down to one at this moment in time. I doubt that the Fed has it in them to raise rates again in 2016, which means that 2017 is going to be a reset year for America. Not only are we going to see a new president, but the likely hood is we are going to see a reset of interest rate here in the US.
Last week, the surprise was the non-farm payroll figure showing 287,000 jobs created compared to 175,000 forecast. Look for this number to be revised downward in the future. The non-farm payroll figure was enough to jump start the equity markets pushing the S&P 500 (CME:SP500) to close within a point lower than its best ever close on May 21st, 2015 at 2,130.82. The DOW (INDEX:DJI) followed but was unable to overcome its highs at 18,351.36 on May 20th, 2015. Both of these indices are now in a positive mode according to the Trade Triangles. The only laggard in the group is the NASDAQ (NASDAQ:COMP) index which has moved into a neutral mode requiring a sideline position. Continue reading "Can Cheap Money Continue To Drive The Market?"