Markets Float After Bernanke Pump Rally
The markets are floating flat on the trading day. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $141.53, -0.08 (-0.06%). Yesterday, Ben Bernanke pumped the markets with talk of more QE (quantitative easing). This sent the QE addicted markets shooting higher like a junkie excited about a fix.
Apple Inc. (NASDAQ:AAPL) hit a new all time high today of $614.91. This is one of the stronger players in the market today, along with Amazon.com, Inc. (NASDAQ:AMZN). These two stocks are helping the NASDAQ maintain a positive day while the Dow Jones Industrial Average and S&P 500 are flat to slightly negative.
Volume has remained insanely light ever since 2012 began. This is one warning sign that should bother most investors. If things were so great, volume would be higher as institutions buy stocks heavily. In addition, this current quarter is the best performer since 1998, just prior to the technology bubble collapse. Lastly, pay attention to metal stocks. They have fallen sharply of late while the rest of the market continues to hit new highs. The metal stocks are a direct gauge of the global economy. The fact that they are not rallying tells intelligent traders that the upside is Federal Reserve based and not fundamental.