Don't Trade Like a Crack Addict on a Fed Fix

A television media reporter this morning said the market’s reaction to TV interview comments by Fed Governor Powell were like a crack addict getting his Fed fix. Powell indicated the Fed would stay true to being data dependent, with plenty of important data between now and the September meeting. His somewhat dovish discussion followed comments from FOMC voting member Lockhart’s statement that he would need to be dissuaded from voting for a rate hike as things stand today. Stocks are trading quite sensitively in anticipation of an imminent Fed liftoff to interest rates, and Powell seemed to serve the market the drug it needed to refresh enthusiasm. Though, it also ensures extreme volatility around key economic data points, including this week’s Employment Situation data. Be careful investing over the next few months friends, as these swings and volatility are likely to continue. Long-term investors can actually look forward to the start of Fed rate hikes finally happening, as it will usher in discussion about the economy, which is what we truly should be focused on. Economic justification for normalized interest rates should be celebrated by the market over the longer term as it serves to stave off inflation. See more about this crack addict!

Sector Security	1:00 PM 8-5-15
SPDR S&P 500 (NYSE: SPY)	+0.4%
SPDR Dow Jones (NYSE: DIA)	+0.1%
PowerShares QQQ (Nasdaq: QQQ)	+0.8%
iShares Russell 2000 (NYSE: IWM)	+0.2%
Vanguard Total Stock Market (NYSE: VTI)	+0.4%
iPath S&P 500 VIX (NYSE: VXX)	-0.2%
PowerShares DB US Dollar Bullish (NYSE: UUP)	+0.1%

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