Obama
Does
Not
Bash
Wall
Street,
Markets
May
Bounce.
(SPY),
(QQQQ),
(USO)
January 27, 2010
The markets staged a late rally after the Federal Reserve left interest rates unchanged. In addition, their comments alerted the markets that interest rates would remain at rock bottom levels for the foreseeable future. With interest rates low, stimulus money flowing, growth and the re-inflation rally continuing in the near term are likely. The markets surged into the close turning from a negative day into a solid positive day.
In addition, this evening President Obama gave his State of the Union address to the nation. This week Wall Street has had a tough time rallying due to worries about the tone of his speech. The worry stemmed from his latest comments on regulating banks and not allowing them to take risks. The risk companies like Goldman Sachs Group, Inc. (NYSE:GS) have taken and are directly responsible for the massive profits they have turned in the last year. Goldman Sachs reported that over six billion of their nine billion in revenue came from trading. President Obama has warned he wishes to curb risk by the banks. Those comments had been the catalyst to the latest dump on Wall Street.
The markets were on pins and needles as they awaited the State of the Union address this evening. Harsh comments directed towards Wall Street did not happen. In a relief push, the S&P futures are currently trading higher by 8.25 points.
Look for commodities like oil, United States Oil Fund LP (ETF) (NYSE:USO) and the markets, SPDR Trust, Series 1 (NYSE:SPY), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) to bounce tomorrow. The bounce could be short lived but enjoy the relief rally for now.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
