MLR - PMP 7/15/13
Major averages continued their gains though on lower volume. Leading stocks wended their way higher including LNKD, TSLA, AMZN, GOOG, EBAY, BIIB, and REGN among many others, with some making new highs. In particular, BIIB issued its second pocket pivot buy point in two days and REGN broke out of a double-bottom base formation. Pre-open most leading stocks are looking to extend their gains
Bernanke said that he thought improvement in labor markets was overstating the true health of the job market. This was a clue that the Fed plans to keep quantitative easing on full for potentially longer than expected. This pushed rates lower, and in turn, pushed the dollar lower, sending stocks and bonds higher.
Economic news was weak as the University of Michigan's consumer sentiment survey just barely came in under expectations, and the producer price index showed more inflation than expected. A weak economy increases the length of quantitative easing. Higher inflation decreases the length of quantitative easing. Such mixed economic signals have not been unusual. Overall, the economy at home and abroad appears to be slow to jump start which should keep QE alive and kicking for at least a number of months.
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