NY Fed President Williams tries to say, "Never mind."
New York Fed President Williams made some very dovish comments mid-afternoon yesterday…and this led to a nice bounce in the stock market. It also helped fuel and drop in the dollar and a decline in interest rates. However, Mr. Williams and a NY Fed spokesman walked-back those comments after the close of the market, so it wouldn’t be a surprise if the markets reversed at least some of yesterday afternoon’s moves.
"Insurance" doesn't always work.
The thing is, even though the NY Fed walked-back those dovish comments, they still reiterated the need to "act quickly" if things turn-down. This sense of urgency should raise concerns in investors' minds. This is especially true given the fact that the Fed's record of success when engaging in "insurance" rate-cuts is an uneven one. Click here to find out in my premium newsletter what this important development means for investors.
Chips stocks trying to play catch-up.
Having said all this, one key leadership group is playing catch-up. It's getting overbought, but if it can rally further, it should be bullish for the broad stock market. Click here to access my premium newsletter to find out what levels investors need to be watching in the SMH semiconductor index.
Stay nimble my friends.
What I'm trying to say this morning is that the stock market still has some decent upside potential….BUT since the Fed is telling us that we’re sailing through an iceberg field right now. Therefore, investors will NEED to stay nimble going forward.
Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
275 Grove St. Suite 2-400
Newton, MA 02466
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