Bill Cara: Afternoon rally likes Bernanke speech, Thurs., 6/15/2006 2:52 PM

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June 15, 2006

Afternoon rally likes Bernanke speech, Thurs., 6/15/2006 2:52 PM

Ben Bernanke just finished speaking to a major audience: the Economic Club of Chicago. You could refer to it as "Afternoon Delight" tra la la.

He appeared at ease, and traders liked it. But what they liked even more was the word that had gone out that he would make no waves.

And so the bond market started to move higher sometime about 40 minutes prior to his speech, and the equity markets lifted off slowly and steadily from about 20 minutes prior to his speech at 2 pm ET. The Dow is now up +160 points on the session.

The question I have is, why care? If traders want to take the market higher; it's good for a trade. It is also an opportunity to sell into strength.

If this is a bull market, where are the utilities, banks, and techs? Nothing, nada, zip.

Dead cat stuff.

Posted by Posted by Bill Cara on June 15, 2006 02:52:15 PM | Category: Cara Today in the Market

Discourse

Bill & Readers,

Technically Gold have completed an Impulsive extended correction wave (2) of [ 3] , The next up move could be quiet long (3 0f 3) and there is a good chance it will extended more then 313$ and will probably challenge the all time high gold price (1980). Interesting times head.

http://globalgold.blogspot.com/2006/06/gold-market-update.html

Posted by: real1 at June 15, 2006 3:08 PM [link]

Primarily driven by Options Expiration activity IMO.

Posted by: DaveB at June 15, 2006 3:29 PM [link]

Bill, you say this is dead cat stuff. But is it a short-term rally of just a few days or the start of the expected summer rally in the middle of this year's bear market? Considering how much closer we are to the highs than to the expected lows of the bear, this seems to be a short-term rally. On the other hand, half of June has already passed, summer is almost here, and it's almost July. Furthermore, if this is just a short-term rally, then gold and the gold mining equities would also have to retest their recent lows (unless they start detaching from the broader equity market).

Posted by: tc at June 16, 2006 7:29 AM [link]

>>Started out this morning feeling so polite
I always thought a fish could not be caught who wouldn't bite
But you've got some bait a waitin' and I think I might try nibbling
a little afternoon delight.<<

Some people got hooked on the bait this week:)

Able Ape

Posted by: ableape at June 17, 2006 12:52 PM [link]