Well, the ending to this week was capped off by some of the worst communication strategy I have seen from the FEDs…Aunt Bee [A.K.A. Janet Yellen] spoke from the Fed’s Anal Symposium (sorry, I meant to say the Annual Symposium) from Jackson Hole WY (appropriately named of course!)…she started talking at 10 AM EST (and a transcript of her speech was released as she started) and the market price action seemed to say, “OK, we can prep for one rate hike; –and the idea of a very slow and cautious glide path for future rate hikes makes sense”…so price action turned more bullish and volatility actually came down some…then, no sooner had she finished her talk when “The Boys” from the FED, like J. Bullard came out on the press circuit and said, we can see not one, but TWO! rate hikes in 2016! Now price action of course reacted very poorly to this concept and the outcome was predictable; -bonds lower, USD higher and Gold; –well it was a bit confused…Volatility also shot right back up as well….So in summary here, the FED communication strategy needs an attitude adjustment! Here is my take on the markets below:
Don’t Be A Rat Brain Trader — Trade Smart !!