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1.Market Observations, 7.GEMs, 8.Was Sticky

30 Nov 2018 (AFR) – Fed chairman Jerome Powell triggers market rally, says rates ‘just below’ neutral

[COMMENT: It might be great news to some people that the Dow Jones index jumped 618 points in one day; but take a good look at the chart of the S&P500 index and note that in the big scheme of things this one day rise on the Dow, or the S&P500 is but small when compared to where the index has come from. Share Market GEMs tip: Always step back from the day-to-day action and look at the bigger picture, because the market is like an elephant.]

(30 November 2018, AFR, p31, by Jacob Greber)

S&P500 index (Bloomberg, AFR)

S&P500 index (Bloomberg, AFR)

‘Washington | Donald Trump’s constant browbeating of Jerome Powell may just be working, with the Fed chairman conceding for the first time that US interest rates are now near their so-called neutral level, suggesting he may slow the pace of normalisation in 2019. Stocks leapt the most in eight months as growth stocks surged, and the US dollar fell after Mr Powell said the Fed’s benchmark rate is “just below” estimates of where it neither adds to nor detracts from growth. The Dow closed 618 points higher, paced by Caterpillar and Boeing. Amazon was 6.1 per cent higher, Netflix rose 6 per cent; Apple added 3.9 per cent.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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