Santa Fed Just Keeps on Giving
by David Brown, Chief Market Strategist, Sabrient Systems
Is that Santa Claus streaking across the sky with a sleigh full of toys? Nah, it's good ol' Santa Fed dropping bags of POMO money into the economy . . . and it seems to be working, at least on some levels.
The stock market has been on cruise control for the holidays, with the bulls teasing the bears occasionally but giving little back. Powered by the Fed’s cash machine, the SPY has continued on its strong December path. The market is now in blue sky territory, and not even China interest rate hikes and lower consumer confidence readings can stop it.