Man, talk about a yet another tough week for those that were predominantly long. That is how I am generally positioned, with a few rolling hedges and weekly sales of covered calls.
The week started off with an intense, no, almost rabid fear ahead of the FOMC meeting, which turned out to be a shocker and not in a good way. After the Fed had been threatening the world with rate hikes for almost two years, braying in a hawkish fashion every chance it got since last June and ratcheting up the threats, it turns out that I was right all this time. The Fed had been whistling past the graveyard and the only reason for the rate hike last December was confirmed on Wednesday ¿ to save face and save face alone. I have stated this reason on untold occasions.
On Wednesday, not only did Fed ChairJanet Yellen and her bozos fail to raise rates, they also lowered GDP growth forecasts for 2016 and 2017 to 2% from 2.3% and 2.2%, respectively.
After the Fed clown show was over, these talking heads promptly started wringing their hands and predicting the end of the world, due to the Brexit issue. This is something I also said would happen immediately after the FOMC event was over with.
Then, on Thursday, there was the tragic murder of a UK parliament member. That put the Brexit issue on the back burner for that afternoon, before raising its ugly head yesterday despite the global markets remaining relatively calm and ending the week on a positive note. It's almost like our market seems to want to take everything on its own head, even if it's an issue that does not directly concern or affect us. I can maybe understand our market taking a "woe is me" beating, if Great Britain does vote to leave the European Union next Thursday. But for it to fall apart and swoon like a little fainting goat, well in advance of the event, is frankly embarrassing for the greatest country on the face of the earth, with the biggest stock market in the galaxy in terms of market cap.
Cest la vie, mes amis.
Next week, the biggest event is, of course, the referendum on the Brexit issue. Given the way Chuckles, aka Mr. Market and aka our equity indices, swoons every time someone says "Brexit," the resolution to this yet to be non-event couldn't come fast enough. To my friends and family members across the pond, I say, "Good luck."
Next week is another steady dose of the clowns on parade, beginning with the Federal Reserve Bank of Minneapolis President Neel Kashkari on Monday, Yellen's testimony on both Tuesday and Wednesday, concluding with the Robert Kaplan Show on Thursday.
Finally, let's not forget the all-important economic data parade that investors will be treated to, both here at home and internationally. After all, our FOMC clowns have done such a "great" job forecasting policy, based on their keen interpretation of the economic data.
While I am on the Fed issue, a question does pop into my mind, "Were these Fed heads our leading economists and academics, before their appointments, or were they really the worst weathermen and weatherwomen who could be found?"
On the tech land earnings front, Adobe (ADBE) will post its results at the closing bell on Tuesday, while Accenture (ACN) and Blackberry (BBRY) both release their results before the opening bell on Thursday.
Be sure and rest up this weekend, as the Brexit hand wringing is not going away till the end of the week is almost upon us. Of course, once that is done with, Wall Street pundits, gurus and swamis will immediately turn their attention back to the rate-hike issue yet again, whether or not people want to hear it.
With that, I wish each and every one of you a safe and joyful weekend with your loved ones.
