From Peter Tchir of TF Market Advisors
Bad AAPL, Good Fedo
In spite of earnings that crushed it for Apple, broader indices struggled to show much strength overnight and slid on the back of some weak earnings out of Europe and growing concerns that few people at the Greek PSI negotiating table have a clue. The comments coming out of the ECB seem more absurd than anything, but I was very surprised how isolated the strength in the market was to Apple (and Nat Gas where UNG is up close to 20% in a couple of days).
The rally into the Fed statement seemed about par for the course. Who wouldn't be nervous with helicopter Ben on tap. Yet I thought the Fed was disappointing. 2014 seemed like a big concession, but low clearly means 1% or lower, not 0.25%. Will change if economy changes anyways. No mention of new QE3. Admitted that targeting employment is impossible. They did indicate a willingness to let inflation run a little high if growth was still slow - ummm, haven't they been doing this for the past year?
I really felt the fed was underwhelming, though clearly by the current price action I'm wrong.
Not sure what to make of a market that traded relatively poorly on strong apple earnings but managed to rip higher on a relatively neutral fed statement.