Markets make the news – not vice versa

News watchers will have got burnt by the Fed announcement, says John C Burford. But not traders following Elliott wave theory.

The results meant the pressure on interest rates markets had been eased and yet T-bond yields rose (prices dropped).

Yesterday the US second quarter (Q2) GDP data was released and showed an upward revision to the Q1 figure and a decent Q2 one. The consensus after the release was that the Fed would increase the Fed Funds rate after all, because the economy was stronger than originally thought. Talk about a whipsaw!

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.