Yet, Bernanke's dovish tone (print more money statements) yesterday has not seen the large financial stocks like JPMorgan Chase & Co. (JPM) and Wells Fargo & Co (WFC) rally. While the whole market is up sharply higher, JPM and WFC are both flat to lower. Does smart money not believe Ben Bernanke? Smart money may be smarter than the stock market here and realize Ben Bernanke and the Federal Reserve will be withdrawing some of QE before the year is out.
As an investor or trader, one must pay close attention to this divergence between the stock market and the financial stocks. Something is wrong when the market rallies because Ben Bernanke says he is going to print money forever and the financial stocks can't catch a bid.
Chief Market Strategist