Saturday, March 14, 2015

Follow The Message of The Market, Not Fed

Investors, driven by the human tendency to point the finger of blame toward others in protection of the ego rather than admit shortcomings of knowledge or understanding, like reading headlines below. The Fed only wishes it was so influential. Smart money through the studying price, leverage, and time recognizes a seasonal transition already underway. This transition, unlikely to be discussed in the Fed's language, demands respect.

Experienced investors know that the Fed's language could easily be written in Latin. The message of the market, while bullish, advises caution.

Headline: Investors in 'patient panic' over Fed language

By Sinead Carew

U.S. stock markets are in the midst of a "'patient' panic" ahead of Wednesday's Federal Reserve statement, when many investors expect a change in the Fed's language that would send the clearest signal yet that a rate hike is coming soon.

The S&P 500 has fallen 2.6 percent since February's stronger-than-expected jobs report a week ago boosted expectations for an interest rate increase as soon as June.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.