‘Hell will break loose’ if Fed loses patience
By SHAWN LANGLOIS
MarketWatch.com
Mar 17, 2015
Daytraders tend to relish when the market bounces around like a leprechaun on a hot griddle. But for everybody else, it’s tense times in the trading pits these days.
While a calm often settles over markets in the days leading into a hyped-up Fed statement, recent action says to gird for more rockiness. Dips are being bought and profits are being scalped.
Yet for all the sparks flying on the S&P, its up only 1% so far this year. That’s better than down, of course, unless you’re betting the “don’t pass” line. But compare that with the 24% explosion to the upside on Germany’s main index, and you’d be pardoned for suffering Teutonic envy.
Shanghai, while no Germany, is also doing better than U.S. stocks, and a tandem of brokers are feeling the bull run in China has a long way to run (see call of the day).
Nevertheless, the U.S. is still firmly entrenched in its own bull party, despite recent queasiness. In fact, we’re just about 2,200 days into it. Another two months, and this bull market will overtake the one from 1974-1980 as the third-longest since 1929, according to Bloomberg.
Getting there just might hinge on the Fed’s next move. It could go either way, according to the Fly from the iBankCoin blog, who spoke of extremes.
“If we find out this Wednesday that [Janet Yellen] is not, in fact, patient, hell will break loose and 66 seals of hell will be broken — paving way for actual centaurs to roam, wall-kicking people in the faces with their hooves,” he wrote. “On the other hand, if Janet is patient and says so, we’re all going to make an absurd amount of money.”
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