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Federal Reserve Realizes The Condition

After all this time that I’ve been saying that there is no good reason for the DOW and the rest of the markets to be as high as it is, we can see from the comments from the Federal Reserve, we are not bouncing back from the recovery as they and the Obama Administration have been trying to feed us for the last year. The Federal Reserve states that the economy is not growing as fast as they once thought. To make matters worse, the dollar is at a fifteen year low against the Yen.

In the first forty five minutes of trading today, the DOW is down 200 points. A sign that that investors and brokers are waking up to the realization of the fact that we are not out of the woods yet. NASDAQ is also down 54 points in the same amount of time. All together, each of the three idicies have lost roughly 2% in less than one hour.

Of course I expect the markets to jump back up, but that will be from the market makers trying to make some more profits on this sell off. The DOW has moved up to 10,700 in the last week and there should be some profit taking, but this drop is not going to end with a few people taking their profits. I feel that some will start weening out of the stock market in preparation of the correction we’ll see in the second half of this year.

If you are still looking for some trading action, because you love the game of the markets, I suggest that you learn and start shorting stocks and the overall market.

What happened to the stock market today?

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