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Richard's Remarks

 

As of yesterday's close the Dow looks in fine shape, as you can see below. The Dow is above both its 50 and 200 day moving averages, with RSI and MACD both in bullish trends, although RSI is entering overbought territory.

 

 

 

The benchmark 10-year Treasury has formed a down-pointing wedge, a formation that usually breaks out to the upside.

 

 

 

 

Thus, stocks and bonds are positioned to move higher -- which goes along with my thesis that Bernanke doesn't want to taper now and thus have to deal with tumbling markets near the end of his term of office. If Bernanke holds off tapering, then by the end of his term in January, the stock and bond markets should be rallying, and Bernanke will leave Washington amid cheers and a glowing legacy.

 

NEWS: As I suspected, there will be no tapering by the Fed. Bernanke wants to leave amid cheers from the markets. In retrospect ... Log in or subscribe to continue reading.


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