{"id":13906,"date":"2012-09-13T07:14:06","date_gmt":"2012-09-13T14:14:06","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=13906"},"modified":"2012-09-13T07:14:06","modified_gmt":"2012-09-13T14:14:06","slug":"little-new-news-from-jackson-hole-but-market-readies-for-action-anyway","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2012\/09\/13\/little-new-news-from-jackson-hole-but-market-readies-for-action-anyway\/","title":{"rendered":"Little New News from Jackson Hole But Market Readies for Action Anyway"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. <a href=\"http:\/\/seekingalpha.com\/article\/843571-little-new-news-from-jackson-hole-but-market-readies-for-action-anyway\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<blockquote><p>&#8220;&#8230;the private sector\u2019s revised outlook for the policy rate also appears to reflect a growing appreciation of how forceful the FOMC intends to be in supporting a sustainable recovery.&#8221; (Ben Bernanke at Jackson Hole, Wyoming in speech titled &#8220;<a href=\"http:\/\/www.federalreserve.gov\/newsevents\/speech\/bernanke20120831a.pdf\" target=\"_blank\">Monetary Policy since the Onset of the Crisis<\/a>&#8220;) <\/p><\/blockquote>\n<p>This statement was just about the only new news I could discern from Ben Bernanke&#8217;s speech at Jackson Hole on August 31. It serves as a reminder that the Federal Reserve will continue to take strong measures to address persistent economic weakness. In a more subtle sense, it communicates to any who will listen that if you did not believe the Federal Reserve is ready to act again when it sees the need, then you need to hop on the train of &#8220;growing appreciation&#8221; before you get left behind. I am guessing in that spirit, silver (SLV) and gold (GLD) rallied forcefully and long-term Treasury yields dropped. Gold broke out from its downtrend, silver looks ready to do so, and TLT jumped over final resistance. This trading suggests the market is getting ready for action although <a href=\"http:\/\/drduru.com\/onetwentytwo\/2012\/09\/03\/t2108-update-120831\/\" target=\"_blank\">the S&#038;P 500 (SPY) ended in a stalemate<\/a>.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_13895\" aria-describedby=\"caption-attachment-13895\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_GLD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_GLD.png\" alt=\"Gold finally breaks out\" title=\"Gold finally breaks out\" width=\"500\" height=\"350\" class=\"size-full wp-image-13895\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_GLD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_GLD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-13895\" class=\"wp-caption-text\">Gold finally breaks out<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_13881\" aria-describedby=\"caption-attachment-13881\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SLV.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SLV.png\" alt=\"SLV is on the verge of a breakout from a long downtrend\" title=\"SLV is on the verge of a breakout from a long downtrend\" width=\"500\" height=\"350\" class=\"size-full wp-image-13881\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SLV.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SLV-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-13881\" class=\"wp-caption-text\">SLV is on the verge of a breakout from a long downtrend<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_13896\" aria-describedby=\"caption-attachment-13896\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_TLT.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_TLT.png\" alt=\"TLT breaks through resistance\" title=\"TLT breaks through resistance\" width=\"500\" height=\"350\" class=\"size-full wp-image-13896\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_TLT.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_TLT-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-13896\" class=\"wp-caption-text\">TLT breaks through resistance<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_13900\" aria-describedby=\"caption-attachment-13900\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SP500.png\" alt=\"The S&amp;P 500 closed right on resistance from the May, 2012 high\" title=\"The S&amp;P 500 closed right on resistance from the May, 2012 high\" width=\"500\" height=\"350\" class=\"size-full wp-image-13900\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SP500.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_SP500-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-13900\" class=\"wp-caption-text\">The S&P 500 closed right on resistance from the May, 2012 high<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p>The rest of the speech was an accumulation and\/or compilation of opinions, projections, and policy pronouncements that have been made in the past&#8230;{snip}<\/p>\n<p>So, overall, Jackson Hole appeared to provide a summary and confirmation of the Federal Reserve&#8217;s readiness to act if deemed necessary. {snip}<\/p>\n<p>The currency markets took the dollar index down on the heels of Jackson Hole, but it was not a large move relative to the slow decline already underway. {snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_13918\" aria-describedby=\"caption-attachment-13918\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_DXY0.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_DXY0.png\" alt=\"The dollar index sets a new marginal 3-month low but remains in an overall uptrend\" title=\"The dollar index sets a new marginal 3-month low but remains in an overall uptrend\" width=\"500\" height=\"350\" class=\"size-full wp-image-13918\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_DXY0.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120831_DXY0-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-13918\" class=\"wp-caption-text\">The dollar index sets a new marginal 3-month low but remains in an overall uptrend<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_13921\" aria-describedby=\"caption-attachment-13921\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120903_EURUSD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120903_EURUSD.png\" alt=\"The euro has drifted higher off recent lows - June&#039;s highs loom as firm resistance\" title=\"The euro has drifted higher off recent lows - June&#039;s highs loom as firm resistance\" width=\"500\" height=\"350\" class=\"size-full wp-image-13921\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120903_EURUSD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120903_EURUSD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-13921\" class=\"wp-caption-text\">The euro has drifted higher off recent lows - June&#039;s highs loom as firm resistance<\/figcaption><\/figure><br \/>\n<strong>Source for charts: <a href=\"http:\/\/www.freestockcharts.com\/\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p>Be careful out there!<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. <a href=\"http:\/\/seekingalpha.com\/article\/843571-little-new-news-from-jackson-hole-but-market-readies-for-action-anyway\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Full disclosure: long SSO puts, long GLD and SLV, net short the euro (all at the time of original writing)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. Click here to read the entire piece.) &#8220;&#8230;the private sector\u2019s revised outlook for the policy rate also appears to reflect a growing appreciation of how forceful the FOMC intends to be in supporting a sustainable recovery.&#8221; (Ben Bernanke &#8230; <a title=\"Little New News from Jackson Hole But Market Readies for Action Anyway\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/09\/13\/little-new-news-from-jackson-hole-but-market-readies-for-action-anyway\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[456,199,59,58,20,266,21],"tags":[376,28,127,384,200,24,283,431,719,115,25,354,499,280,1591],"class_list":["post-13906","post","type-post","status-publish","format-standard","hentry","category-bonds-2","category-commodities","category-economy","category-federal-reserve","category-forex","category-government","category-u-s-dollar","tag-eurusd","tag-euro","tag-fxb","tag-gbpusd","tag-gld","tag-gold","tag-ishares-barclays-20-year-treasury-bond","tag-ishares-silver-trust-etf","tag-jackson-hole","tag-monetary-policy","tag-silver","tag-slv","tag-spdr-gold-trust","tag-tlt","tag-u-s-dollar"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Little New News from Jackson Hole But Market Readies for Action Anyway - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/09\/13\/little-new-news-from-jackson-hole-but-market-readies-for-action-anyway\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Little New News from Jackson Hole But Market Readies for Action Anyway - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. 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Click here to read the entire piece.) &#8220;&#8230;the private sector\u2019s revised outlook for the policy rate also appears to reflect a growing appreciation of how forceful the FOMC intends to be in supporting a sustainable recovery.&#8221; (Ben Bernanke ... 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