Special (newsletter) Update – April 6, 2017

Yesterday was a potentially important day in the stock market.  Since the beginning of March the market has been slightly lower in what appears to be a small correction after the large run up in prices in late 2016 and early 2017.  Today seemed like a breakout kind of day with stocks up strongly this morning boosted by some impressive employment numbers.  Then late this afternoon the US FED released minutes from its last meeting where it boosted interest rates .25%.  Those minutes mentioned that later this year they might start cleaning up their bloated balance sheet.  In other words, they may begin liquidating some of the bonds bought over the past 8 years.  You may know the FED purchased about $4T in US Bonds and they would dearly like to sell them to someone else….gradually.  This came as a surprise to many and the stocks seemed to tank right at the time of that news.  A large gain was turned into a small loss in the last two hours of trading. A rise and fall of this magnitude has not taken place in over a year so I am paying attention and trying to listen to what the market is saying. As the noise gets filtered out…click here