Market Timing Show for 7-12-2013 Close: The Un-American “After Hours” Rally

A Market Timing Report based on the 7-12-2013 Close published Saturday July 13, 2013

Access to Current Comments Click Here

I am doing updates on the private WSSSR Access page on the main site (use link above to get there).  The video below will help orient you to my recent thinking and the private notes will fill you in on my most current take on the markets.

What’ s in the video?  The SP500 index is in rally mode and about to retop at the prior high, interest rates are cooperating a bit, but I point out why they could continue higher from here and squash not only the stock market rally, but the gold (GLD) rally as well.

Have a listen here on YouTube:

Market Timing Show for 7-12-2013

Now let me explain my title this week.  The Fed Chairman, Dr. Bernanke, spoke after the market was closed saying that the market’s idea that the QE taper was definitely going to start in September was wrong.  He SHOULD have made this statement by the light of day during normal trading hours and there should be a regulation in place preventing all Fed comments on monetary policy at meetings held after the market close.  The market is very susceptible to being manipulated when the volumes are lower, so the same thing could backfire as a big sell-off next time.  The fact that the market rose doesn’t matter.

The fact that the Fed still sees the need to intervene with QE when a recovery is underway is perverse.  Dr. Bernanke even complains that Congress is not doing enough.  So the Fed must act is the argument.

This is a grotesque distortion of the U.S. Constitution.   Our founding fathers certainly did not intend to create a private institution like the Fed to control our economy, an institution which is unelected, and which now directly and indirectly controls prices in every market causing stocks, currencies and gold to jerk up and down with their every proclamation.  What we are experiencing is the “tyranny of monetary policy.”  

If you agree, contact your Congressman/woman and Senators (Google “contact senator” and “contact congressman”) and tell them that:

1. The Fed should be restricted to giving speeches during normal market hours and

2. The Fed should not be a vehicle through which the employment rate is adjusted.  Their primary focus should be the stability of the monetary system, preventing runs on banks and other financial institutions, and controlling the rate of inflation by monitoring interest rates.

Congress was meant to act with the President to support economic recovery and growth, not unelected Fed officials.  Some would even argue about that.  The economic dictatorship that the Federal Reserve has established in the name of stability must be reversed.  It is un-American.

This week our founding fathers rolled over several times while the Fed Chairman was setting off an after hours rally, committing what should be a federal crime.

Have a great week investing and/or trading!

Standard Disclaimer: It’s your money and your decision as to how to invest it.

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I thank Worden Brothers for the chart system I use to post these charts.  If you want to know more about the charting system I use every day, go to my “Other Resources” page here:  Other Resources   It makes it much easier to follow along with me if you can see the charts and manipulate them on your own computer, so it’s a great investment to have an excellent charting system.

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The next full issue will be out on Sunday, August 4, 2013 for free subscribers.  In the meantime, I’ve been commenting on the “WSSSR Access” page at SunAndStorm.com on my trading thoughts on many days.  Look also for comments on Twitter (link above).

Copyright © 2013 By Wall Street Sun and Storm Report, LLC All rights reserved.

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