Monday, March 26, 2012

Timing the Market with Fed Chair Ben Bernanke

Timing the market is a difficult enterprise, according to just about any trader or analyst, or even the sage Bob Brinker of syndicated radio show Money Talk fame.

However, timing has gotten easier if you just follow the Chairman of the Federal Reserve, Ben Bernanke around and watch for the proper signals, which, unless you're deaf and blind, are hard to miss.

The signals are easy to discern, even for those not well-versed in matters of the economy, as is our fearless Chairman.

Here you go:

Ben opens mouth, speaks. Buy stocks.

That's it, and that's what happened today when Mr. Bernanke - he of the printing press and money-dispensing helicopters - spoke at an early-morning gathering of the assemblage at the National Association for Business Economics (NABE). It didn't really matter what Bernanke said - he says pretty much the same thing all the time - but, rather, how Wall Street interpreted his words, which they interpreted exactly the same way they have his last eight or ten speeches: He's printing more, not raising the federal funds rate for a long, long time and QE3 is on the Fed's rader. Buy, buy, buy. Don't look, don't analyze, just buy.

And it worked like a charm. The dollar was down, the euro up, but, most importantly, stocks eviscerated all memory of last week's worst-in-2012 decline. Done. Easy. Inflationary. Profit.

Dow 13,241.63, +160.90 (1.23%)
NASDAQ 3,122.57, +54.65 (1.78%)
S&P 500 1,416.51, +19.40 (1.39%)
NYSE Composite 8,288.80, +108.74 (1.33%)
NASDAQ Volume 1,625,670,875
NYSE Volume 3,467,794,000
Combined NYSE & NASDAQ Advance - Decline: 4326-1350
Combined NYSE & NASDAQ New highs - New lows: 409-28 (Thanks, Ben!)
WTI crude oil: 107.03, +0.16
Gold: 1,685.60, +23.20 (Yes, thanks, unca Benji!)
Silver: 32.75, +0.48 (Zounds, Ben, thank YOU!)

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