Fed’s Regulation “Stickler” Resigns, Bank Stocks Lead Trump Rally Extension

Fed’s Regulation “Stickler” Resigns, Bank Stocks Lead Trump Rally Extension

Fed’s Regulation “Stickler” Resigns, Bank Stocks Lead Trump Rally Extension

$DIA, $SPY, $QQQ, $VXX

Fed board member Daniel Tarullo, a Key official guiding bank regulation efforts, resigned effective in April

The Financial Select Sector SPDR ETF (exchanged-traded fund) that owns a basket of bank and insurance stocks, added to gains and was up 0.4% after the announcement.

Mr. Tarullo’s decision clear the way for US President Donald Trump to select a candidate for the bank supervision position. President Trump will choose someone aligned with his desires to roll back the regulations put in place by the Dodd-Frank Act, which overhauled bank supervision in the wake of the Y 2008 financial crisis.

Mr. Tarullo said in a short resignation letter to President Trump that he planned to step down “on or around April 5, 2017.”

Currently there are currently 2 vacancies on the Fed board because Congress refused to confirm two nominees of former President Barack Hussein-Obama.

Mr. Tarullo’s departure will mean that President Trump will fill 3 Fed vacancies in his 1st months in office.

During the Presidential campaign, Donald Trump was highly critical of the Dodd-Frank Act, pointing to it as a prime example of the problems of over-regulation that were harming economic growth.

President Trump is very critical of Fed Chairwoman Janet Yellen. He is expected to appoint someone else as Chairman when Ms. Yellen’s 4-year term ends in February 2018 or force here resignation.

 

Ms. Yellen said she has no intention of leaving before her term ends.

Thursday, the major US stock market indexes finished at: DJIA +96.97 at 20269.37, NAS Comp +18.95 at 5734.14, S&P 500+8.23 at 2316.10

Volume: Trade on the NYSE came in below average at 927.1-M/shares exchanged.

  • NAS Comp +6.5% YTD
  • S&P 500 +3.5% YTD
  • DJIA +2.6% YTD
  • Russell 2000 +2.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.12) Bullish (0.32) Bullish (0.40)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.25) Bullish (0.25) Bullish (0.35) Neutral (0.15)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.58) Very Bullish (0.54) Very Bullish (0.67) Very Bullish (0.54)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.42) Bearish (-0.49) Very Bearish (-0.70) Neutral (-0.07)

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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