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2 Jan 2014
US indexes in red, sentiment still bullish
FXstreet.com (Buenos Aires) - US Indexes started the working year shedding ground, with DJIA losing nearly 100 points, Nasdaq down 0.72% so far today, and S&P also trading in red. Nevertheless, the movement is quite limited considering the amazing momentum seen all over 2013, and Wall Street boys are far from changing the bullish mood, despite some birds of bad omen calling for a crash this year.
Counting on dove Yellen
Having reached record highs last week, and with gains of over 25% over the year, market sentiment has not yet surrendered to latest FED move of reducing partially its continued liquidity injections. With US economy far from showing strong signs of picking up, traders continue counting on easy money to inflate the bubble. Besides, upcoming FED’s head, Janet Yellen is considered to be a dove, meaning more tapering is not yet to be taken for granted. Finally, it would take much more than just 3 positive job reports to convince them the party is over, and so the multi years rally.
Counting on dove Yellen
Having reached record highs last week, and with gains of over 25% over the year, market sentiment has not yet surrendered to latest FED move of reducing partially its continued liquidity injections. With US economy far from showing strong signs of picking up, traders continue counting on easy money to inflate the bubble. Besides, upcoming FED’s head, Janet Yellen is considered to be a dove, meaning more tapering is not yet to be taken for granted. Finally, it would take much more than just 3 positive job reports to convince them the party is over, and so the multi years rally.