Like those about to die miserably in Les Miserables, our fearless Fed leader sang the same old song with a few new lines (well, that's The Who, actually) and, as Lincoln predicted – you CAN fool some of the people all of the time and what a rally we had yesterday, as the Dow popped 200 points on "news" that the Fed would not raise rates more than twice this year. We took quick advantage of it in our Live Trading Webinar and went long on the Russell Futures (/TF) and made a very quick (15 mins) $390 per contract for our Members but, since the whole thing was BS – we took the money and ran!
How much BS? Janet's fake, Fake, FAKE!!! enthusiasm for our economy was nicely summed up by Dave Fry, who said:
"There’s a lot of spin (um, lying?) going on with the Fed’s announcement Wednesday. It’s consistent with past comments and runs as follows:
- Consumer Confidence has improved—no it hasn’t.
- Economic Growth is growing at “moderate” pace—not really unless you consider 1% moderate.
- The strong dollar has restricted economic growth—this has been the mantra for past two years, Retail Sales, Industrial Production and so forth remain weak.
- Oil prices are rebounding has prices increased—that’s possibly true but the category is still weak.
- Employment is expanding as is participation—most new jobs part-time or in the low paying services sectors, this is BS.
- Overseas Economic weakness has little effect on our projections—seriously?
- Financial market (stock markets) are doing well fanning the flames to heat up investor confidence—markets are still rallying based on corporate buybacks.One thing to keep in mind is that this creates a lot of debt.
And, so the psychological manipulation goes."
That "psychological manipulation" was enough to buy us that one more day before reality hit this morning as Japan's February Trade Data was yet another disaster and, when push comes to shove, you can blame a slump in exports to US (…