The most notable characteristic of the market today is how totally unconcerned it is about the possibility of a more hawkish Fed. The odds of a rate hike did increase after the speeches at Jackson Hole, but the action today does not reflect that worry at all. Bonds are stronger, the dollar is doing nothing, precious metals are up and we have very strong breadth among equities.
The bears have long believed that the Fed eventually was going to cause a very ugly correction, but there are no signs of it. Perhaps the fact that its peak vacation season and trading is light is helping the bulls, but this market is not indicating that it expects rates to start running higher.
This market simply doesn't believe the Fed. The governors have done a poor job of forecasting and they constantly have hinted at hawkish policy that never has occurred. Market players simply aren't convinced that the economy is strong enough to justify anything other than token increases in rates.
The fact that the Fed isn't having much influence on the market is allowing stock pickers to be aggressive. They are chasing a number of names that I've discussed quite a bit, such as Acacia Communications (ACIA) , TPI Composites (TPIC) and my stock of the week, Airgain (AIRG) . Airgain is on pace for volume even higher than on the day the initial public offering started trading.
I'm trying to find some new merchandise and am not having much luck. It is feeling a bit frothy and the fact that there is no worry about the Fed is a concern.