However, even though the markets are totally blind to reality, the Fed has worked themselves into a corner. "Today, with inflation currently approaching 4% on a year-over-year basis the Fed is not only outside its inflation mandate of 1-3% but any further cost pressures on the consumer is going to drive the economy into a recession." And, "However, with that there is a bigger problem brewing, and one that has been set aside due to the issues with Greece, the "Super Committee" only has 22 days left to announce the spending reduction plans before the automatic cuts take hold. This won't be good." Guest Post: Fed Trapped By Inflation | ZeroHedge
The Fed's announcement today was dire. Not many have been all that hot this year. The two main headlines I got from the Fed's statement today were - (both from FOMC Disappoints, Evans Dissents Wants More Easing: Full September-November Comparison Redline | ZeroHedge). These announcements with the rest that were chilling at best were enough to drive the DOW up 100 points. All it takes is a hint at further easing to motivate the algo bots to do the Fed's bidding to get markets higher.
- FED REITERATES `SIGNIFICANT DOWNSIDE RISKS' TO ECONOMIC OUTLOOK
- FED SAYS IT'S PREPARED TO EMPLOY TOOLS TO BOOST RECOVERY
UPDATE: Dig this - "we believe the bear market rally is behind us and anticipate a move towards the 1,000-1,015 target over the weeks and months ahead." Citi: "The Bear Market Rally Is Behind Us; We Anticipate A Move To 1,000-1,015" | ZeroHedge. If that happens, there will be no recovery and you better be heading to the ammo and food store. Sadly you get a chicken shit chart - why not generate something like this that I have been showing for .....6 months to a year now? Oh, I have more and better charts, you all know that.
Here, in one glorious post you can read it from the horses mouth all of the issues facing the EU and why there is no "out" available for the spiraling debt crisis. Apparently some actually realize this pattern of bailout to sustain and pile on more unsustainable debt must end at some point and that point will not be pretty. This Is Yet Another Glaring Example Of Why The EU Is A Mind Blowing Failure
What would a Certain Death post be without throwing in a little middle east World War Three catalyst? Drudge has all the links. Israel should have bombed Iran a year ago September before they finished the nuclear plant. Stuxnet slowed them down a bit, but did not do the job. "The noon launch near Tel Aviv, which had not been announced in advance, coincided with a week-long surge of speculation in local media that Netanyahu was working to secure cabinet consensus for an attack on Israel's arch-foe." Israel test-fires missile as Iran debate rages | Reuters. And of course Iran fired back - Iran Rattles Saber at Israel, - Israel National News
No Obummer bashing today - Nahhh, just kidding. I can't resist.
"As President Obama dusts off his 2008 theme of “hope” in anticipation of his reelection campaign, he has a problem to get around: Among young voters, one of his most crucial constituencies, hope is, like, so yesterday." Hard Economic Times Rob Young Voters of 'Hope' - Scott Bland - NationalJournal.com
Chart of the Day -
/es minis 15m - Which channel - I thought the yellow one was it, then I got to drawing lines and came up with the green one. Two things for sure 0 1236 resistance and 1218 support. Of course this unchartable market will most likely throw another curve ball tomorrow. One thing tipping STB off is the lack of patterns or reliable signals from TA. I have seen dry periods, but not like this - thus - these are not normal movements in the markets.
Remember to Duck and Cover when you see the flash. It can come at any moment.
GL and GB.