Ride on Housing's Coattails
A picture-perfect jobs report on Friday was followed up a palatable statement from the Federal Reserve Tuesday. The Fed was far from hawkish, downplaying the U.S. economic recovery and saying it still sees significant downside risks. The central bank reiterated its pledge to keep interest rates low through at least 2014. I was happy to see the market's reaction to the statement, though I'm surprised the Fed is remaining so cautious on the economy in light of the mostly favorable economic data in recent weeks.
The language was music to the market's ears, and the major averages rallied strongly as a result, finishing near session highs. Volume on the NYSE and the Nasdaq picked up nicely after the statement came out, rising sharply from Monday's levels. What looked like another low-volume session ended with a bang. To me, it looked like more new money came in from the sidelines....453 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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