Showdown at the Federal Reserve Corral

With apologies to Shakespeare, in 22 hours we have our answer...

To give them endless more free punch OR to actually let the reckless teenagers of the market know that one day the central bank might actually act like an adult .... THAT is the question

The showdown between bulls and bears will commence at 2:15 PM tomorrow....

.... at which time we all act like lemmings herking and jerking the market around as if 2 words in a statement will change the destiny of the galaxy. (perhaps even the universe) We sit right below the 50 day moving average on the S&P 500 again. All it will take is Father Ben Bernanke to bless his minions with promises of endlessly more free money for "an extended period" of time and we can post more bear hides to the wall.

Then after acting in a mindless manner for 105 minutes Wednesday afternoon, we will forget about that "all important" decision by midday Thursday and repeat the whole exercise premarket Friday at 8:30 AM. We will call this "investing".

Such is life in the computerized, HAL9000 driven casino stock market where long term means 8 minutes.

"I, Mark, do solemnly swear to follow PhD programmed algorithms in whatever direction they determine that 2 words in a Fed statement here or 28,000 jobs plus or minus there, shall deem us worthy to go. I shall then chant "the market knows all" and "as long as the market goes up, all is right with the economy" as my dogma handbook says, while smiling for CNBC."

Comments

[Michael Clark:]

Very good article. Very entertaining.

I think the whole point of Ben Bernanke's existence is his support of Inflationism as a creed. I don't see him backing up a step unless Wyatt Earp can take him down with a single shot between the eyes.

This, of course, is what I'm hoping (and praying) for.

Nov 04 07:58 AM

[John Galt:]

Don't ever see we have a free market.

As long as the government sets the
- price of money (interest rates)
- Quantity of money ( money supply)

We do NOT have a free market. Those are two of the most important parts of our entire economy, they factor into every single decision we make, yet we have the government pulling the strings from behind a secret ( not even auditable) cough cough private organization.

Abolish the fed... ( they caused the fricken mess)
At worst, Audit the Fed...

Ohhh no, we couldn't have that, we have the crooked politicans in Charlotte NC, trying to block Ron Paul's bill because that might hurt the Wall Street South in Charlotte.

Nov 04 09:19 AM

[David Roskoph:]

Spot on! Although the corraling has magic helpers to assist in the temporary insanity. Do you realy think the public races the markets around? How about seasoned managers? Of course not. The market is there, center stage, to both entertain and fleece. The Bull and Bear raids of the pre-SEC days are back with a vengance - conducted by whom? Can anyone even bring themselves to pronounce collusion?

Nov 04 10:44 AM

[HunterGVL:]

Buy, Buy, Buy....errrrrrghhh
Sell, Sell, Sell....errrrrghhhh
Short, Short, Short....errrrghhh
slowly lift pistol to noggin........ahhhhhhh
Go Long, Go Long......errrrghhh
Buy, Sell, Buy, Sell... NOOOOOOOOO!
Pull the trigger.........ahhhh, sweet mercy

Nov 04 11:18 AM

[TraderMark:]

sounds like a typical week for me. lol


On Nov 04 11:18 AM HunterGVL wrote:

> Buy, Buy, Buy....errrrrrghhh
> Sell, Sell, Sell....errrrrghhhh
> Short, Short, Short....errrrghhh
> slowly lift pistol to noggin........ahhhhhhh
> Go Long, Go Long......errrrghhh
> Buy, Sell, Buy, Sell... NOOOOOOOOO!
> Pull the trigger.........ahhhh, sweet mercy

Nov 04 01:07 PM

[moneyagent:]

Well Well Well. I spoken truth is worth more then a decade of blinding light. Good ventilation tactics. You must have felt better about yourself after writing those words of wisdom. However, to those of the highest realm. I ask. What is the answer? I already know the problem. Completely understand that problems of the future will always be quantified as being larger and more separate from truth. The policy of business remains the same Profit profit PROFIT!. Who is slated to profit in today's market? Not regular people. Not the banks. Not the government. C'mon uncle Sam is taking 10% more out of your checks in the very near future and they are calling it a loan that they will pay back next year. The large private money enterprise called commercial investors are blood hungry and stock its prey. Soon the feast will start and the poor saps that could not liquefy will be history. This is a beautiful world. The world of catch up to the hole digging monster that keeps undermining the financial markets.

Nov 04 01:18 PM