Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 17th of July.
Let's Face It, Bernanke Is A Wimp
To be fair to Fed chairman Bernanke, he is human and like all humans, he is not perfect. His weakness right now is he just wants to get through the rest of his term, which ends on the 14th of January 2014, and not rock the boat. I think if anyone has said that the QE program (yeah, printing money), now in it's fourth year, would take this long nobody would have believed it, including chairman Bernanke.
The reality is, QE looks like a trade that has gone bad and nobody wants to admit it. It was a bad bet (trade) the Fed made and they all have egg on their faces, but nobody from the Fed is ever going to say they made a mistake with the QE program, including Chairman Bernanke. Like I mentioned earlier, humans are known to make mistakes.
Here is how I see things playing out for the balance of 2013, Chairman Bernanke finishes his term on the 14th of January 2014 and goes into some academia/retirement position or writes his memoirs. To whomever inherits the Fed mantle and becomes the next Fed Chairman, I wish them a lot of luck as they are going to need it digging us out of the hole that Bernanke has put us in. The next chapter is when the finger-pointing starts, you know how that goes. Which leads us to the market, and how to trade this market. I think the best course of action is to be fluid and to go with the flow, there is no reason to try to swim upstream at this point in time. Eventually the markets will turn and choose the next direction, but until that time, enjoy the upward ride because it's not over yet.
If You Missed My Appearance On CNBC Closing Bell Yesterday
Here's yours truly on CNBC's "Closing Bell" with Maria Bartiromo. Check out all of the stocks we talked about: Amazon (AMZN), NetFlix (NFLX), Wells Fargo (WFC) and Apple (AAPL)
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Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.