Janet Yellen told us yesterday not to overreact to the Friday's AWFUL Jobs Report while she herself overreacted and took the June rate hike off the table, blaming the Brexit vote – as if she only just yesterday found out about it. That sent our markets flying higher and, this morning, Asia followed us higher and Europe followed Asia and the US higher and now our markets are following Europe higher and the tiger will continue to chase it's own tail for a while and we'll see where we end up but then what?
Then tomorrow we get the oil inventories at 10:30 and $50 oil is one of the big drivers of this week's rally as the Energy Sector and the Financails who lent them money are much relieved. If you actually read Yellen's speech – it's kind of all over the place and she says "Unfortunately" 3 times and essentially says the Fed does not have a clue as to what's going on or what to do about it. Isn't that AWESOME???
She says weak 10 times: GDP growth, economic activity, business investment (3 times), productivity (3 time), US growth and International growth. The only "strongs" she mentions are goals for the future so yes, we are weak (10x) and we HOPE to be strong (4x) and the market reaction is to get back to all-time highs – as if we're already strong and getting stronger – AWESOME!!!
As I mentioned in yesterday's post, we're not trying to fight the Fed(s) here – as long as they are going to keep pumping up the markets, we will go along for the ride – but we will keep one hand on the exit door at all times because this crazy train may come to a screeching halt at any time but, for now, we seem to coast right past crisis after crises as they all pile up in our rear-view mirrors – still there but forgotten by our short-sighted investors.
In fact, our Long-Term Portfolio, which is generally bullish, topped +100% for the first time on yesterday's rally and our Options Opportunity Portfolio (available as a…