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Monday, August 9, 2010

Fed Meeting Tuesday

The market rallied Monday, and with the Fed meeting Tuesday it's anyone's guess.

My guess is Ben and company know that charters are watching, and waiting to do a pile on for a market collapse.

Since Mr. Bernanke has made it his life's mission to prove his theories of monetary policy are right, and that he alone can avoid the aftermath from a spending spree, my guess is he will kick the can once again.

It is possible Mr. Bernanke WON'T kick the can on Tuesday, and the market will fall disappointed. But that layup will only give him room to kick the can later as a reaction.

So for Tuesday, it's really who knows. The pessimist in me says Mr. Bernanke will pull some stunt breaking the back of the USD dollar through the 80 level, and the market rallies.
But if he doesn't, I doubt he has the will to stand aside if the dow breaks below 1,000.

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