Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Sells Yellen's 'Deer in Headlights' Congressional Testimony

Stock-Markets / Stock Markets 2016 Feb 11, 2016 - 12:01 PM GMT

By: Mike_Shedlock

Stock-Markets

Saxo Bank CIO and chief economist Steen Jakobsen phrased Fed Chair Janet Yellen's testimony before Congress this way: "The politicians were rude and pretty much clueless ... and Yellen often looked like a deer in headlights. Her performance today is probably the worst I have ever seen from seasoned central banker!"


After an initial rally attempt this morning, the market had serious second thoughts.

S&P 500 15-Minute Chart

Email from Steen

Steen's email lead-in this afternoon was rather humorous. Here's a slightly edited version.

Today's testimony showed US politics and central banking from its worst side: The politicians were rude and pretty much clueless.

The Chair of the Federal Reserve was of little help and often looked like a deer in the headlight. Incredible! I am sure Ms. Yellen is an excellent "model economist" but her performance today is probably the worst I have ever seen from seasoned central banker!

The Fed came into this meeting with very little credibility and this event did not add to the tally. Instead, we are left wondering how they expect to help the market. One Senator asked: "Ms. Yellen, what tools are those you keep talking about, interest is pretty much zero anyhow?"

Yellen responded: Well, we can do "lower for longer"!

So let's forget about central banks. Yes, Draghi will try to command some media time and the BOJ likewise, but it's probably to no use.

Could the European Central Bank expand its asset-buying programme next month to include corporate debt in an effort to help the eurozone's banks?

From Evercore ISI: ECB Likely to Buy Corporate Debt .

"We think the ECB is increasingly likely to expand its (quantitative easing) programme into investment-grade corporate debt in March. This would be a means of pushing back against the surge in credit risk premia that is in turn contributing to pressure on equities in general and bank stocks in particular," the investment bank writes.

"Buying investment-grade corporate debt would directly lower spreads on this debt, while putting downward pressure indirectly on bank bond yields and on spreads on non-financial high-yield bonds through portfolio re-balancing effects," it adds.

Evercore ISI reckons the ECB is increasingly likely to introduce additional measures to support bank funding in a complementary effort to help stabilise eurozone banks.

"We do not think the ECB will buy bank debt outright. However, one obvious step would be to increase QE in covered bonds, allowing banks to wrap more assets and sell them to the ECB," it writes. "Another would be to put in place an additional series of cheap TLTRO term funding "

Conclusion

Yellen did not deliver anything to help the market at all. She left Capitol Hill bruised but is back tomorrow.

My risk model is still calling for a lower market.

1st support is 1813/15, 1560/80 if broken. I still see an end of March low, Oil in 20/22$ range, Gold at 1,300.

Safe travels,

Steen

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2016 Mike Shedlock, All Rights Reserved.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Mike Shedlock Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in