This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Janet Yellen Speaks and Up Goes the S&P 500: Mission Accomplished

Stocks in this article: XLU OIL GLD IEF BRCM FCS DB FANG

NEW YORK (TheStreet) -- Federal Reserve Chair Janet Yellen speaks and the S&P 500 hits an all-time high. It is mission accomplished.

The S&P 500 closed up 14.99 points at 1956.98 on Wednesday, a new all-time closing high, while the DJIA closed up 98.13 at 16906.62. The Nasdaq finished higher by 25.60 at 4362.83 and the Russell 2000 was up 6.51 to close at 1183.13.

This is all courtesy of the Federal Reserve and its continued dovish stance on the economy. This is allowing the stock market to continue moving higher as the bubble continues to grow with 0% interest rates and the all clear signal to buy equities.

Do not be concerned that inflation is all around. The Bureau of Labor Statistics (BLS) seasonally adjusted price index for meats, poultry, fish and eggs hit an all-time high in May.

The leading sector to the upside in 2014 continues to be the Select Sector Utilities ETF (XLU). It was up 2.27% on Wednesday and up 15.2% for the year to date. The S&P Goldman Sachs Crude Oil Trust Index ETN (OIL) continues to rip higher, up 11% YTD, and the SPDR Gold Trust (GLD) is up 6% YTD.

The Barclays 7-10 Year Treasury Bond Fund (IEF) is up 4% YTD. So if traders and investors want to forget or not notice what this stock market and economy is signaling, trade and invest at your own peril. There are serious issues out there that are being masked over by what the Federal Reserve is doing and their policies. Please take notice.

It appears that the Federal Reserve is attempting to move all savers into the stock market with their zero interest rate environment and no timetable for raising rates in the future. This will end very tragically and sooner than you think.

As this stock market continues to play out on the upside, I once again caution traders to have a risk management process that is repeatable and reliable.

I am finding absolutely no small-cap or large-cap stocks at the close of trading on Wednesday that are extraordinarily oversold according to my algorithm process. This is unprecedented. When the only stocks showing up on my scans are the extraordinarily overbought, I stand up and take notice and so should you. This is reckless buying at the present time.

The Fear/Greed Index data from CNN/Money are showing a Greed Index of 94. Folks, that is Extreme Greed and a contrary indicator. A selloff is close at hand. Be prepared.

With that said, On Wednesday I covered most of my short position in Broadcom (BRCM) and Fairchild Semiconductor (FCS). Both at nice gains. I also sold my Deutsche Bank (DB) long from Tuesday at a nice profit.

This is opportunistic trading that can be found at I also started a new short position in Diamondback Energy (FANG) with an extraordinarily overbought algorithm number of 100.

At the time of publication the author was short BRCM, FCS, and FANG.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Caveat Emptor, Investors: The Regulators Are Trying to Protect You

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs