Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...please read my full Disclaimer at this link.


* If the dots don't connect, gather more dots until they do...or, just follow the $$$...





* Wed. Feb. 21 @ 2:00 pm ET - FOMC Meeting Minutes
* Wed. March 6 @ 2:00 pm ET - Beige Book Report
* Fri. March 8 @ 8:30 am ET - Employment Data
* Wed. March 20 @ 2:00 pm ET - FOMC Rate Announcement + Forecasts and @ 2:30 pm ET - Fed Chair Press Conference

*** CLICK HERE for link to Economic Calendars for all upcoming events.

Thursday, September 27, 2012

The Fed Can't Save the GDP Numbers

Data released today shows that the Q2 Final GDP fell short of meeting expectations as it came in at 1.3% versus 1.7%.

The graph below shows that it's generally been in decline from its peak in December 2003. For the past three years, it's been well below the average seen from 2004 to 2008...proof that the Fed has kept the markets artificially inflated since they are currently trading back up at 2008 levels, or much higher as is the case in the Nasdaq 100 Index, without the fundamentals to support current prices or continued growth expectations at the same pace, particularly without the assistance of joint political economic efforts/policies, as has been the case to date.

Precisely, how the Fed's latest QE program of buying Mortgage-Backed Securities will help this situation any time soon, if at all, leaves me baffled and wondering where the markets are headed.

Durable Goods Orders plunged dramatically from 3.3% to -13.2%, while Core Durable Goods Orders dropped from -1.3% to -1.6%, as shown on the graphs below...data which confirms a slowing of demand, not an expansion.

***It seems fitting that this data is reported in this, my 666th blog post!