Cheap Short Term Money Driving This Fed Sponsored Market

Cheap Short Term Money Driving This Fed Sponsored Market

$DIA, $SPY, $QQQ

This financial market volatility is being driven by short-term money without regard to long-term economic fundamentals.

There is a huge amount of money that moves without regard to long-term economic fundamentals, and the volatility is creating opportunities for long-term fundamental investors looking to snap up undervalued stocks.

The leveraged ETFs, high-frequency trading and other types of leveraged strategies are Key factors that contribute to market volatility. That has compounded participants’ fears and led to more selling in markets.

Taking it all into consideration, the market is finding reason to rally, because it seems to be the thing to do these days for reasons that are more mechanical, technical, and psychological than they are fundamental.  There can be a lot of boost when those 3 forces align, but it really takes fundamental force to keep things going North, cheap Fed money is not enough.

I believe that Donald Trump will be good for America and the long term financial markets and will do everything in my power to get him elected. I believe the stock market would go up 10% when he wins the White House.

Wednesday the US major market indexes finished higher: DJIA +122.10 at 16912.29, NAS 100 +42.79 at 4791.15, S&P 500 +15.91 at 1995.83

Volume: Trade was above average with more than 1.15-B/shares changing hand on the NYSE:

• NAS 100 +1.2% YTD
• S&P 500 -3.1% YTD
• DJIA -5.1% YTD
• Russell 2000 -4.3% YTD

Stay tuned…

HeffX-LTN

Paul Ebeling

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