By: Steve Smith
The market continues to rip higher, with the “SPDR (SPY)” now up some 305 from the March low and just 10% from its all-time highs. In recent Option360 Monday Outlooks I’ve discussed the difficulty being bearish in general and especially during the current environment in which the rules, policies, and government institutions are geared towards rewarding shareholders.
First and foremost, you have 10 years of the Federal Reserve’s intervention which has not only run far and wide from the Feds supposed dual mandate but has a completely perverted monetary policy, the very nature of money and purpose of public markets in which risk/reward and responsibility are supposedly associated with participating in the buying and selling of financial assets.
It may sound simple, but it’s true; Don’t fight the Fed. And they’ve come out and said they will do everything and anything, including the direct purchase of corporate and municipal bonds and even high yield ETFs such as “SPDR Bloomberg High Yield Bond (JNK)”.
There are also… Continue reading at StockNews.com