Obama talks and the markets listen?

Some of the pundits think so. The President spoke today at a quasi town hall event discussing the economy, taxes and the recovery efforts. Personally I believe these markets are now breaking out of its 4 month or so trading range and the shorts could also be scrambling and contributing to the breakout that’s occurring. One caveat here as it pertains to this strong rally continuing is the Fed which holds it policy meeting tomorrow. Whether this rally continues or we head back into the multi-month trading range we have been in depends on the fed statement that¬†comes out after their meeting. If it is a none event then these markets can indeed continue higher in anticipation of the change that is coming in Washington, the possible delay of higher taxes and once again the low interest rate enviroment we find ourselves in.

Good luck to all and have a great week.