Well it seems that nothing will get in the way of the stock market moving higher, especially in an environment where the Federal Reserve continues to broadcast that it will support the price of stocks no matter what happens.
Today, we heard from Minneapolis Federal Reserve bank president Neel Kashkari, almost as if on cue after last nights terrorist attack in Manchester England which threatened to push stocks lower. Neel made several dovish comments regarding Federal Reserve monetary policy which helped to push the stock market higher in early trade.
Well they say what goes up must come down, and once again the stock market fear index is scary low.
Now this does not mean that we are going to see in immediate spike in market volatility, especially in this Federal Reserve managed market environment- but it does mean that we need to keep an eye on the VIX.
In my opinion this market has become 100% reliant on support coming from the Federal Reserve and therefore has no bearing on reality, why? Because this is what the Federal Reserve has been unrelentingly doing since the stock market meltdown of 2008.
Most of you who are reading this article already know that I personally do not care whatsoever what direction the stock market moves, I just want us to capitalize on whatever move it makes. With that said, let's ride this overwhelmingly complacent "managed by the Federal Reserve" stock market higher while keeping a close eye on the VIX.
Gregory Mannarino