Wednesday, October 20, 2010

Market Seeking Direction or More POMO Please?

In the parlance of Wall Street, today was a "risk on" event, erasing the losses from Tuesday with an injection of another $600+ million from the Federal Reserve in the form of another in a seemingly-endless POMOs.

Stocks just catapulted right from the opening bell. It's obvious that the stock market cannot go down prior to the elections - or maybe they will - because that would be an overt indication that the economy is not as good as CNBC and the rest of the brain-dead media want everybody to believe it is.

Dow 11,107.97, +129.35 (1.18%)
NASDAQ 2,457.39, +20.44 (0.84%)
S&P 500 1,178.17, +12.27 (1.05%)
NYSE Composite 7,523.81, +100.16 (1.35%)
NASDAQ Volume 2,042,942,750
NYSE Volume 5,598,244,000

Advancing issues decimated decliners, 4798-1685, and new highs bettered new lows once again, 410-43. Volume was moderate. Forget about yesterday. That was simply a profit-taking day for the insiders. Move along. Nothing to see here.

Commodities ramped right back up, with oil gaining $2.28, to $81.77. Gold was up $8.20, at $1,344.20, and silver tacked on eight cents, to $23.86.

Is this any way to treat your money, your retirement funds, your kid's college savings? Maybe, if you believe that everything is just fine, that the largest banks in the country don't have trillions in bad debt sitting off their books and that the Fed is on your side.

Good luck with that.

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