WASHINGTON, October 29, 2014 – It’s trick-or-treat time on Wall Street today, albeit just a tad early in the week. After opening nicely up nicely in a follow-through to Tuesday’s rally, traders changed their minds this afternoon after the Fed definitively—more or less—finally put a stake through the heart of QE. It’s like the Day of the Living Dead right now on Wall Street.
Even so, and fortunately for bulls, the Fed, in its long-awaited October statement Wednesday afternoon, mentioned those magic words: “for a considerable time.” That phrase was (and is) used to describe just how long the central bank plans to keep interest rates at historic lows. An the Fed used the phrase again today.
Since low rates have been, at least in part, what’s been keeping 2014’s more or less extended rally going, that should have made markets happy, right? Wrong, it would seem. As the time for the Fed’s missive approached, all averages headed for the cliff, although oddly, at about 3:45 p.m. EDT, the bulls seem to be attempting a last-minute comeback.
Speaking of oil, we were irked but not surprised that we didn’t get any shares at all of today’s hot Shell Midstream Partners master limited partnership (MLP). The biggest IPO of its kind to date, shares were to be priced between $19-21 last night, so the Maven put in for a modest amount—particularly when he noted they’d upped the final offering price to $23, which is usually a good sign of interest in a given IPO.
Sure enough, there was loads of interest. The Maven, like most little guys, was promptly shut out of the deal, and the flippers had all the fun today as the stock is up a whopping 10+ points at $33 and change. If you ever wonder why the middle class is either shrinking or doing a fiscal dog paddle in place, this long-running example of the rich getting richer is one part of a very miserable story.
Aside from this, Wednesday on Wall Street is too goofy to describe with any accuracy. Aside from the Fed, stocks on the whole had suddenly become grossly overbought, so you had to expect something like this.
As for us, we’ll leave you now with these tidbits and we’ll come back tomorrow, hopefully with some insights and recommendations once today’s zombie stocks get re-animated one way or the other.Click here for reuse options!
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