FED Tells Investors to Take A Hike, Dow nears 52 Low

Get your money outta here!

Going back to June 22, 2011, the Fed has now raised the rates nine times in a row, and their fourth hike this year. Government doesn’t trust you with their money. Good one. I think the Fed is trying to make up for their Operation Twist experiment, with their Quantitative Easing. Watch out as inflationary pressure bleeds over to the broad market.

Looking at the week chart for the Dow does not look healthy. Low volume rallies getting wiped out by weak dip-buyers who sell at every news reel. If I saw that chart above and thought it was an equity stock, I would short it hard as a swift drop would be on the way.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s