Legendary Party Tom Farris Artist
Deer Woman watches as the wolf shares his martini with the water serpent and bison man nurses his.
As Deer Woman takes center stage, this piece becomes relevant as the legendary party the Federal Reserve invited the market to last Friday.
Deer Woman, according to Native-American mythology, may appear as an old woman or beautiful maiden. Men who are lured into her presence become trapped by her magic.
In a dramatic climax to the week, the Federal Reserve, our Deer Woman, became the ultimate trickster.
Whether they raise or lower interest rates, no matter. The perception counted most. The 20+ Year Treasury Long Bonds (which I featured on August 8th in the Daily called “Close Encounters with a Channel of the Technical Kind”), finally gave up the 50 daily moving average and headed into an unconfirmed warning phase.
Janet Yellen, the market Deer Woman, made her appearance from Jackson Hole as the older lady. She took center stage. She clearly trapped bulls with her magic as she seemed to play “good cop, bad cop” with Fed President Fischer.
While Janet spoke of reasons to hike, she also expressed concerns. Fischer came out much more hawkish. So much so, he could have been included as “Hawk Man” in Mr. Farris’ painting.
Some of us did not imbibe spiked martinis during Fed speak. Instead, those of us dressed as “Little ‘Red’ Riding Hood” went to Granny Retail’s house. And since the wolf was otherwise engaged, we arrived safely.
A much more sobering party, it did reveal some truths.
Before the open last Friday, the Gross Domestic Product number showed a 1.1% growth in the second quarter. The day before, stats displayed that consumer spending grew. Flat growth, better consumer confidence. Is that what the Fed sees as they project into the near future?
Perhaps consumers will positively impact the 3rd quarter GDP. For now though, Retail is a must watch.
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