Market Action After Good Earnings Shows Fed Is Only Catalyst
The price action in the stock market leaves little doubt. The only way this market can go higher is if the Federal Reserve comes to the rescue again with dovish, money printing comments. Yesterday, great earnings were reported from Facebook Inc (NASDAQ:FB), QUALCOMM, Inc. (NASDAQ:QCOM) and Baidu.com, Inc. (NASDAQ:BIDU). The market shrugged them off and has fallen nicely. Even the day prior, Apple Inc. (NASDAQ:AAPL) reported better than expected earnings and the markets sold off as well.
This is the third day in a row the S&P 500 will be down. The only shot this market appears to have of going higher is Ben Bernanke saying he will print more money for longer. This is a recipe for disaster. It is a drug in the vein of the market. As the average investor continues to pile into the market, the potential of disaster increases through the price action.