After the FOMC carnage on Wednesday evening, equities recovered ground and are carrying on their upwards March.

I mentioned on my blog from 15th Dec Monday to look out for Janet NOT mentioning "considerable time" for rate hikes for a continuation of the downward move. I also mentioned 200 day moving average and the danger of not closing below it.

Sure enough as soon as Janet started speaking, out comes the “considerable time” phrase again. I immediately closed my short position in s&p500 and listened in. There was some confusion over the phrase and some thought that perhaps FED had changed their forward guidance policy. It turned out that they didn’t change anything, but that they are still allowing “considerable time” before the rate hike. Janet also said that they will re-evaluate this within a couple of meetings. To which a “clever” journalist asked: “what does a couple of meetings mean?” with Janes responding; “a couple of meetings means two meetings”?!

So after such a gem of a conference that sent markets rallying again, I’m left wondering if the “considerable time” was only left in there for the sake of Christmas cheer. To keep people happy and spending money for the holidays.

You see, around this time last year, terrible winter storms rocked America. NFP job numbers were absolutely terrible, seeding doubts about the whole US economy recovery. This year, though, everything is hunky dory, so perhaps FED decided to avoid the elephant in the room in the wake of festivities – the unavoidable rate hike. Well - Ho,Ho,Ho to you too granny Yellen!
She's a real dove, isn't she?