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Today's Video Update: Let's Face It, Bernanke Is A Wimp

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)

If You Do Nothing Else This Month, Watch This Video

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Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Bloomberg BNN CNBC FOX

Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

Comments

  1. Sham says:

    I noticed the Monthly Red Triangle for INTL GAMES gave a signal at the bottom of the market in the chart on your video. So basically the question is how effective is your trade triangle technology - can you give actual nos and %s. Thanks

  2. Anonymole says:

    Bernanke can't just tow-the-line, he keeps pushing the bus further near the cliff; sooner or later it's gonna tip...

    If he would just announce a PLAN and then stick to it rather than show up and shock the markets every couple weeks we could all have our expectations set and make PLANs of our own.

    1) Reduce the monthly QE by 7.5 $billion each month going forward. Do this until there is no more QE.
    2) Set an interest rate hike schedule and stick to it. 25 basis points per quarter until the Fed Fund Rate is 5%.
    3) Get OUT OF THE WAY.

    • Sparrows345 says:

      You're buying into the mainstream media assumption that the system can handle that, that it's 1990 and we are not really tens of trillions in the hole and counting.

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