The 'Yellen Effect' Revitalizes Wall Street, for Now

NEW YORK (TheStreet) -- The "Janet Yellen effect" took hold of Wall Street on Wednesday, again. The DJIA and the S&P 500 both saw nice upside gains. The DJIA finished up 117.52 points to 16518.54 and the S&P finished up 10.49 to 1878.21. The Nasdaq closed down on the day by 13.09 at 4067.67, with the Russell 2000 up fractionally at 1108.55.

This stock market is frustrating many traders and investors alike. A two-tiered market is not a strong stock market. However, this is the current market. That is precisely why this stock market is not for amateurs.

This market is stock-specific. The momentum stocks that every hedge fund and momentum trader was buying earlier this week are now the stocks being sold in the last two days. We are speaking of Apple (AAPL), Facebook (FB) and Netflix (NFLX).

Contrary to what the Federal Reserve chair is saying in testimony, there is huge inflation going on in this economy. The Fed would lead you to believe that inflation is not a problem. I am here to tell you that is not the truth.

The price of oil is soaring along with food prices, most notably wheat, corn, and coffee. If you add the burning dollar to that mix, you have rising inflation.

The American consumer is feeling the direct hit. The Select Sector Consumer Discretionary ETF (XLY) has been in a Trend Bearish mode since March 2014, according to my internal algorithm process.

If you liked this article you might like

Why Apple Is Increasingly Investing in Its Suppliers, Including Possibly Toshiba

Why Amazon's Reported Smart Glasses Might Be Just a Niche Product -- For Now

Driving This Beastly Cadillac CTS Reminded Me That Sexism Is Alive and Well

PayPal's Venmo Gets Ready to Take on Apple