Since day one of Ben Bernanke’s testimony did not provide any clear signs of when we could see another round of quantitative easing, Big Ben has gone into obfuscation mode and he’s playing it close to the vest.
Perhaps, we might need to look at the moon for a market tip.
On Tuesday Mr. Bernanke will have the second day of his testimony and the moon, yes the moon, will have a new phase. Since Ben will remain tight lipped, we might need to review previous studies on how the major indexes have performed during the changing of the moon’s phases. The market psychics aren't answering their phone
Actually, the Buy the new moon and Sell the full moon strategy in past years has had some success, but so far this year the S&P futures contract is not highly correlated. Surprisingly, the inverse of this strategy has worked - buy the full moon sell the new moon has been profitable four months out of seven this year.
Maybe Ben will take some cues from his lunar guides and invert his monetary strategy. Since QE’s past haven’t worked and QE’s future have already been priced into the market, maybe he should tell Congress that he is turning off the printing presses and that his policy of forced liquidity has failed miserably
But expecting that type of prudent talk from "Helicopter-Ben" is as likely as a square moon.
Trade well and follow the trend, not the so-called “experts.”
President & Founder - TradingAdvantage