Higher oil prices have helped the market, however everyone cheering higher oil prices should keep in mind that it would be nice if oil prices can stay below $30 so that I can continue paying for dirt cheap gas prices of less than $1.95 a gallon...all we need is $3.00+ gas to come back and will see yet another surcharge increase in food and services across the board...
Just need a short string of scary days to give em the cold sweats...Heck this illiquid market can ramp 8-10% in less than 2 weeks and just as easily dump the same amount...
Exactly what I was thinking....once the Dow clears 17,000 and world markets are up 5%+ in the next week or two the fed can once again resume their interest rate increases..
The fed claims its not about where world market indexes go or where wallstreet heads but you know for sure that if the the S$P was clearly tanking and dropping in much more than a bear market right now and the S$P was trading well below 1500 there would be 0% interest rates with QE 4 being launched....and if the S$P fell below 1200, well QE 5 would be on the table along with NEGATIVE INTEREST RATES ....
Yes, it's crystal clear...They were dovish in Sept after the 8/24 debacle, the employment report in early oct sent the market into the stratosphere and when the S&P was back at an acceptable level, they turned hawkish again...Market collapses in January and the tone changes once again... Look no further than Draghi in early Dec after the "market" didn't like his less the ebullient prescription for more easing...a day later he revised his comments to get the market to rally and admitted as much... These markets are razor thin at this point and as we've seen they can be pushed wherever it's needed (especially overnight)
the question is why there are so fixated on this? It's clear to everybody markets are not free now so they don't perform their initial function On the other hand intended wealth effect also doesn't work as Bernanke envisioned it So wise thing would be slowly withdraw from manipulation but probably just impossible at this stage Anyway if market above 2000 by the March meeting and Yellen will signal June rate hike
I believe it's the same reason the Japanese CB buys equities in conjunction with their radical monetary policy...Perception, perception, perception...