FED EASES AND MARKET RALLIES...

That is the template of yesterday after the FOMC minutes. FED tapers, markets do rally. That is a clear sign of a bull market. The main indices managed to finish near to the session highs, while traders appeared to cheer the Fed minutes. The U.S. stocks closed modestly higher on Wednesday after the FOMC minutes. FED members decided to end the Fed’s bond purchases by October if the economy stays on track. This morning the European index futures little changed after 4-day drop, and therefore we are expecting some rebound today.

Yesterday performances:

• Dow +0.47%
• Nasdaq +0.63%
• S&P500 +0.47%

Against all these bullish signs I love to read comments and article like those below. I just found them within few minutes this morning:

- “The End is coming. Sell everything!”
- Michael Sincere “there is nowhere to go but down.”
- WSJ “buyback slowdown may signal bull run's end”

I would tend to disagree with these statements. We are among those who see this bull market having more room to run because just yesterday the DJIA showed again the power of bulls and came within about 1 point of 17,000. On DJIA the new resistance is at 17,000 if it is taken the index could go up new record again.

The BFM Assets Team.