This process is what worried Mr. Bernanke according to his recent speeches. Since it seems to be happening, it may lead the Fed towards a more prudent stance regarding the new round of QE.
Friday, October 29, 2010
GDP
I think the GDP report reflects the ongoing process of the consumers taking over some of the growth burden from the business sector. Thus, the consumption data shows some increased positive contributions (services consumption is coming back to life) while businesses made smaller contributions than before or even negative ones.
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2 comments:
Thanks, Adi!
What do you think about the market after Fed meeting? I am still believing in bullishness since you have to trade what you see, not what you want to see. Market is in uptrend.
Tony
Tony,
It is an uptrend and the bullish case is quite strong.
However, the longer term technical readings still keep me in the bearish camp. Once they are invalidated I am ready to become an annoying permabull again, as in 2009.
I think the market will correct until Friday then start going up again. This is where I expect it to show its true colors. Lack of weakness will make me a bull; hopefully, not too late.
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