IS STAGFLATION HERE? - Fed Chairman Ben Bernanke spoke today and the markets clearly didn't like what he had to say. The NASDAQ and other indexes all fell .8% today in higher volume making it the first distribution day since this latest rally began on March 21st.

Technically the rally will stay in tact unless we get 4 or 5 distribution days within a 4-week period (or if the market under-cuts the previous lows.)

Stagflation, a portmanteau of the words stagnation and inflation, is a term in macroeconomics used to describe a period of high price inflation combined with slow output growth, high unemployment, or recession. "Stag" refers to a sluggish economy, while "flation" signifies rapidly rising consumer prices.

Bernanke said the sub-prime mortage debacle was a "threat" to the housing recovery which by itself may have meant he wants to ease interest rates. But then the markets began selling off almost immediately when he said "core inflation readings were "uncomfortably high." Is the Fed now "caught between a rock and a hard place?"

Seems Mr. Bernanke may not be such a "Helicopter Ben" after all. Of course I'm referring to the famous speech where he said he would "drop dollars from helicopters" to stimulate the economy if he had to.

In the mean time the markets remain in rally mode and currently our portfolio has 4 top-rated stocks in the Buy Zone, 5 Setting-Up, and 6 Off and Running.


Thanks for stopping by. Every day I will be looking for top stocks showing exceptional strength, and I will also be keeping an eye on things as they can quickly change. Please look for my recent stock picks at The GOLDEN TICKER.


It's always a good idea to review THE TOP 12 RULES OF STOCK INVESTING YOUR BROKER OR ADVISOR WILL NEVER TELL YOU.


Happy Trading,

Mark Gordon

Chief Market Strategist
GOLDENTICKER.COM

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