The Traderszone Network

Published in TZ Latest News 26 September, 2014 by The TZ Newswire Staff

Is Technical Analysis Relevant if the Fed is Controlling the Stock Market?

Short answer: Yes. First, it is a market of stocks, not a “stock market”. It is highly unlikely that the Fed is controlling the business decisions of Delta, Alcoa, Micron, Avon, Whole Foods, Mattel and other companies. Some stocks may be more interest rate sensitive than others, but Fed policy is probably not part of the boardroom debate at most companies. The PerfChart below shows year-to-date performance for ten stocks in the S&P 500. Is the Fed responsible for this performance differential?

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