Fed Disappoints Bulls: Dave's Daily

NEW YORK ( ETF Digest) -- Fed minutes were released at 2 PM and disappointed those bulls looking for more QE and/or stimulus. Not finding any, they sold. But in the last half hour of trading, dip buyers were once again present halving the losses from the announcement. Those "stick saves' are something to behold!

Factory Orders (1.3% vs 1.5% exp & prior -1.00%) were positive but a mild disappointment overall.

The dollar (UUP) rallied on the lack of further stimulus; bonds (IEF & TLT) were weak as were commodities (USO, GLD & DBC).

Stocks fell sharply, then as indicated, recovered led higher by...wait for it, Apple (AAPL) as an analyst from Topeka Securities (seriously?) raised the stock's price forecast to $1,000 within 12 months. (It echoes of Qualcomm predictions circa 1999 but Apple may be a different case, right?) If the stock were to rise anything like that, imagine the current weighting effect it would have on indices like the NASDAQ 100 (QQQ) and SPDR Technology ETF (XLK). Anyway, the shares rose an additional $10 once again masking underlying overall market weakness. The latter was led by financials (XLK), banks (BAC, MS & C) and most other major sectors (XLI & XLB). Consumer Discretionary and Retail (XLY & XRT) continue to buck any selling trends.

Volume was heavier Tuesday with most coming on selling no doubt due to stops being hit. Breadth per the WSJ was negative.

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