Janet "Goldilocks" Yellen Spoke

posted Jul 16, 2014, 9:25 AM by Katie Shook

Wednesday July 16, 2014

Yellen spoke.  The markets pulled back slightly.  The speech ended.  The markets recovered (mostly).  Overnight the earnings news was strong.  And up up up go the futures, pushing for another run at all-time highs.

Once again, the Fed has done it’s best to toss a cream puff right over the plate for the markets to swing at.   They see things continuing to gradually improve but don’t want to pull the rug out from this thing.  So, for now, things continue to be ‘just right.’  At least the 10-point implied move by the futures would say so.

Based on short-term charts – and the general psychology of this market – that 2000 number may be too juicy to leave alone this week.  From there, I wouldn't mind seeing a 5% pull-back to ‘normalize’ things and firm up consolidation levels.  It would also be helpful for market psychology to experience a correction.  It would provide an opportunity for buyers on the sidelines to move back into the markets.  As it is, a lot of folks are simply waiting for the next shoe to drop.

Daily Digits

Daily Digits 7/16/14

Weekly Estimated Range

Weeklies 7/16/15

IMPORTANT DISCLOSURE INFORMATION Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Littlejohn Financial Services), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Littlejohn Financial Services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional adviser of his/her choosing. Littlejohn Financial Services is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Littlejohn Financial Services' current written disclosure statement discussing our advisory services and fees is available for review upon request.