Ha!!! Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, for a second straight meeting was the sole member to oppose keeping that pledge. Analysts saw Hoenig as concerned that holding rates too low for too long could feed some new speculative bubble in assets such as stocks or commodities.
Every day, the bears keep ranting...it is probably a better strategy to buy and wait for a 10% rise than the other way around. In the long run, stocks go up due to economic growth and if not inflation.
Analysts should tell Hoenig to cover his damn losing short positions and BUY some damn stocks. He should have a look at X, which broke out to new 52-week highs today. X traded at nearly $200 in mid-2008 and their projected 2010 earnings are 1/32 their 2008 earnings, so this one's a real steel at $70...uh, wait a minute, uh, hmmm... OK, wait, I got one for Hoenig! NFLX broke out to new 400-week highs today, meaning there is No Overhead Resistance! I repeat No Overhead Resistance!
I always thought you were supposed to trade the line of least resistance. Clearly, the market doesn't want to go down. When it does, it'll stop consistently going up. (Duh.) Take a look at most "pops." Although on the multi-year charts it may look very sudden, on the 3 month charts it just kind-of looks like the top of a hill. Generally. Some exceptions obviously. Just saying though, fighting the market probably won't make you money. (Now, you can predict it and then time accordingly, but then that's still following it...)
When I first started trading, all everything did was go down. Nothing was going to be worth anything anymore. Now everything just goes up, everyday. Interesting this trading thing. I vote never go down. Everything is wonderful, we will go up for a century and take a knee. But no 10% dip. Maybe a 2% crash and the Fed will step in again. Seriously though, bonds will determine imo. Fed gonna have to do somethin if they feel the heat. Then we correct so the bonds will get bought. Game is rigged yes, but it doesn't have to be equities that are bought. Big Ben gonna make sure his debt is bought. He will hurt you if need be. They wana flee from Euro to buy our debt, he will let it be. But if not, look out.