SO, during the Live Trading Session Friday I was watching the news and commented to those in attendance that there were two peculiar things that came across the wire.
As a preface, I made the comment to the attendees that I thought that the Fed speakers had laid the groundwork for Powell to be more HAWKISH. Verify with attendees.
Here are the two quotes:
Powell: " "inflation is far above the FED' objective...FED is strongly committed to returning to 2% goal...high inflation poses significant hardship" '
Yellen: U.S. Treasury Secretary Janet Yellen told bank CEOs on Thursday that more bank mergers may be necessary after a series of bank failures
What these mean?
Powell said HIGH INFLATION - the primary tool the Fed has to affect inflation? RAISING RATES. Yup. Market didnt care but I did.
Yellen talking about bank mergers. Ask yourself this, why would she need to be telling large bank CEOs that more mergers might be necessary? hmmmm? Well, the most recent mergers werent really mergers as much as BAILOUTS of bad banks. So, if more mergers might be needed, that means that more bank failures.
Regional banks sold off but not the overall market. Bc the market is being supported. Bc the VIX and oil are being suppressed.
Pay attention folks - sometimes they actually tell the truth and signal whats going on. also, signup for the live trading room or free newsletter. Its more than trading.