Liking the Bullish Setup! 08/08/06
The Federal Reserve finally delivered a pause in today's FOMC meeting leaving the Fed Funds target rate 5 1/4%. After 17 straight up moves over the past 2 years, we kind of feel naked without the usual punishment...NOT! Despite the pause, the Fed also delivered a somewhat dovish statement. However, the data dependency will still guide the Fed until the economic reports show inflation abating.
Essentially, the market put the Fed in a box by almost completely pricing in a pause. Had the Fed not delivered what was expected it really could have gotten ugly. Fortunately for Bernanke, the Fed is in a sweet position. The Fed funds rate currently at 5 1/4% offers tremendous flexibility in both directions which squarely puts the power of the Fed over the economy at an apex.
The pathetic Hedge funds used the initial spike today in the market "post Fed" to do the usual fade. However, this time they may have gone to the well once too often. Thanks to a little help from a much more solid report from Cisco then many would have believed the bulls have sufficient ammunition to turn the bears over and spank them. We know, we know...the bulls have squandered every good opportunity in the past few months. However, this time is different.
OH MY GOD, DID WE JUST SAY THAT?! Pretend you never read that line! However,
take comfort in knowing that the setup looks promising for a nice move to the upside...at least for a little while.
If You Held a Taser to Our Head...
We went into today's Fed meeting very long and have even added to our semiconductor exposure after hours. We also like Cisco despite the huge ramp that it is getting after their not so terrible report. Some of the internet stocks also look appealing and we have opened up exposure in Yahoo.
We will not be posting again until August 22nd due to some well needed vacation time for some of the players at KCAP. Sharpen your horns but keep your position sizes small.
Hope you make some money on the long side. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
Essentially, the market put the Fed in a box by almost completely pricing in a pause. Had the Fed not delivered what was expected it really could have gotten ugly. Fortunately for Bernanke, the Fed is in a sweet position. The Fed funds rate currently at 5 1/4% offers tremendous flexibility in both directions which squarely puts the power of the Fed over the economy at an apex.
The pathetic Hedge funds used the initial spike today in the market "post Fed" to do the usual fade. However, this time they may have gone to the well once too often. Thanks to a little help from a much more solid report from Cisco then many would have believed the bulls have sufficient ammunition to turn the bears over and spank them. We know, we know...the bulls have squandered every good opportunity in the past few months. However, this time is different.
OH MY GOD, DID WE JUST SAY THAT?! Pretend you never read that line! However,
take comfort in knowing that the setup looks promising for a nice move to the upside...at least for a little while.
If You Held a Taser to Our Head...
We went into today's Fed meeting very long and have even added to our semiconductor exposure after hours. We also like Cisco despite the huge ramp that it is getting after their not so terrible report. Some of the internet stocks also look appealing and we have opened up exposure in Yahoo.
We will not be posting again until August 22nd due to some well needed vacation time for some of the players at KCAP. Sharpen your horns but keep your position sizes small.
Hope you make some money on the long side. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
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posted by Kleiner Capital Management, LLC. | 5:30 PM
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