This is how the Fed "fixes" the market . Yesterday, t he Chicago Fed's Charlie Evans said he would be "quite pleased" with 2.5% core inflation , a 25% increase in the Fed's Inflation Target. That was at 10:30 and the Dollar took a nose-dive all day, lifting the market over key techincal lines to give us the impression of market strength but, what we really got was Dollar weakness . Equities are priced in Dollars so, if the Dollar is weak, you need to trade more of them for the same share of stock – the stock didn't get more valuable, your Dollar got less valuable but the chart doesn't know that, does it? Here's an interesting way to look at the market: This is the S&P 500 priced in Gold: That's interesting, isn't it. IN PROGRESS
This is how the Fed "fixes" the market.
Yesterday, the Chicago Fed's Charlie Evans said he would be "quite pleased" with 2.5% core inflation, a 25% increase in the Fed's Inflation Target. That was at 10:30 and the Dollar took a nose-dive all day, lifting the market over key techincal lines to give us the impression of market strength but, what we really got was Dollar weakness.
Equities are priced in Dollars so, if the Dollar is weak, you need to trade more of them for the same share of stock – the stock didn't get more valuable, your Dollar got less valuable but the chart doesn't know that, does it? Here's an interesting way to look at the market: This is the S&P 500 priced in Gold:
That's interesting, isn't it.
IN PROGRESS