MysteryTrader's Commentaries
Jul
26
2006
Fed’s Beige Book Won’t Really Help
by MysteryTrader
Overall Rating:
U.S. stocks turned upward Wednesday afternoon after news of the latest Federal Reserve’s Beige Book survey of economic conditions around the country. A number of regions reported a decline in the overall rate of growth in their economies, which might be good news, other things being equal. But other things are not equal.
Rising energy costs are adding to inflationary pressures, and it could get worse before it gets better. War in the Middle East creates the possibility of much higher energy costs. And heat waves don’t help.
I don’t think this 3-day rally can last, so I am shorting it.
Tags: economic-event
