Stock markets will likely rise today due to the Fed

The Fortune Teller Speaks:

I predict a stock market rise today based on the expectation that the Fed will not change its quantitative easing policies, which will likely create a party on Wall Street. In other words, never fight the Fed, and tomorrow the Fed is in full control.

Wall Street Beats & Jives:

All eyes are turned to the Federal Reserve today, as investors continue to speculate about what the Fed will do next. The Federal Reserve’s guidelines to warrant an economic “taper” have not yet been met, so many analysts and investors feel that QE will go unchanged. Now that Janet Yellen is on board too, the doves remain in control, so it is even more likely that the Fed will not change its easing position. With the free money bonanza likely to continue, stock markets will likely have a field day today.

Today also brings us lots of economic reports including the ADP employment report and the Consumer Price Index Report, although Fed actions alone will likely drive markets today, despite good or bad data.

Life’s a Beach and We’re Playing on It:

Yesterday I got crushed with an across the board loss; I made the false accusation that investors would be jittery over the Fed and the terrible Apple (NASDAQ:AAPL) earnings report. But, since the word on the street appears to be more easing from the Fed, I guess I am not surprised that stock markets rose despite my wrong prediction. The S&P 500 (NYSEARCA:SPY) added .56%, the Dow Jones Industrial Average (NYSEARCA:DIA) added .31%, and the NASDAQ 100 (NASDAQ:QQQ) added .36%.

Are Stock Markets Driven by Need, Speed and Greed, OR FEAR?

Stock markets and investors appear largely driven by greed, as every investor on Wall Street absolutely loves the idea of free money from the Fed. If the Fed continues the quantitative easing policy (which it most likely will), we will likely see a green day today.

Totally Calling It:

My five point indicator is flashing 80% green. I’m calling a green market today across the board.

Bottom Line:

Today is a Fed day and investors will likely have a party on the Fed’s free money dime. I think it is that simple. Hopefully the ADP employment numbers will be good, because that is a much more important number to me.

This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.

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