Naked Hedge Fund

Firms are going to be “window dressing” as much as they can and with a lot of the floor probably in the Hamptons early for the Independence day holiday there is a lot of room for manipulation to the upside. Goldman Sachs has been busy with the programming trading as a graph shows.

Today the Federal Reserve spoke and the results were what everyone expected, which was the Fed was going to stand pat and keep their current policies in place.

The most important part of any Fed Rate decision is the markets reaction; and although the decision was an expected result the market responded pretty dramatically in a negative fashion. The Dow, which was up around 100 points throughout the morning, finished down 23 points. And also of note is that the decline was on high volume.

The following are some charts of interest.

* First is a chart from dshort.com that shows the history of inflation from the Bureau of Labor Statistics through the CPI.. to show some of what the Fed is looking at for inflation information to base their decisions on.
* Second is a chart showing the S&P 500 reaction today to the decision.

Today the market puked on itself and has been struggling ever since the 200 day moving average was in the picture. Todays action brought the market to a closing below both the 50 day Moving average and the 200 day MA. The bulls will have to prove themselves. Below is a chart showing the importance of today’s action.

Sen. Johnny Isakson (R-GA), a former real estate businessman, is proposing a new bill that would not only offer a bigger credit, but it would also remove the income caps ($75,000) that kept a lot of buyers out of the credit.

In the post there is a copy of the bill with all of the details.

Sorry for the delay in the posts, but Im currently putting together a new site that I hope you will enjoy. It will be much cleaner and less cluttered… which was bugging me.

Its starting to be a regular occurence where the trading robots over at JP Morgan start a buying spree in the last half hour of trading. Below is a chart showing this action, including todays push up. This move resulted in the DOW having a price range of 190 points. What are your thoughts on this???

Unemployment Rate Flowchart. Bureau of Labor Statistics reported yesterday that the unemployment rate jumped to 9.4%, a 25-year high. If we used todays numbers the way that they did during the Great Depression we are pretty dang close.

Well after this 35% rally we are back to test old faithful the 200 Day Moving

The Great Wall
The Great Wall

average. The 200 Day MA is the Great Wall that separates Bull market from Bear market. This is the first time we have been within striking distance of the MA since last May right around the same time eerily enough.

All you ever hear about is how Building Permits are a leading indicator to the market. So I decided to check it out.

Just what everybody needs is car salesmen in the unemployment line…yikes.