|Good news is bad news|
The earnings right now have not been too bad, and there are much talk amongst traders that this is exactly what they were afraid of. Good reports, good economic data and positive earnings are actually bad for the market?
Well.... the word taper comes into this equation straight away. Remember Ben Bernankes last speech, he hinted if the coming months worth of data was postive and better than expected they would begin to taper.
So my guess is if this economic data continues to surprise and get better, the fed will start to taper. Remember right now nothing has been done. But if they do start to taper, on this good news, I doubt it would be anything drastic. Probably minimal at best.
We have been watching this very closely, but it has not really affected the market too much right now, but if we get more good jobs numbers, and more positive economic data, there are big warning signs for the market, and as you saw last time, just the hint of the word taper, and the market unraveled a bit. So I think as your read this, where the market is right now, and watching more good news, could be a real WARNING SHOT ACROSS THE BOW so to speak.
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