The Wrap-Fed Watch Tomorrow

{+++}Will the Fed pump more loot into our broken system tomorrow? We’ll find out around 2:30 PM EST. Bernanke is a disaster and probably has no choice but to be dovish. Money growth is dead and banks own more homes than people right now. Tomorrow will be a huge day. It honestly could go either way, so please keep your stops tight.

Not only is money tough to get, but no one wants it. Why? Uncertainty, small company America is not only worried about there own balance sheets, but the balance sheet of America. No demand…, small businesses are pulling in. Uncertainty about tax cuts, regulation and health care rules the day. Many of you are small business owners, you know the story. Think of this, rates are the lowest in history and most people cant grab that 4.5% fixed rate for a mortgage.

That’s enough macro for me tonight, the hammer is going to fall fast and furious on this market, the question is when. I am looking at more shorts than longs these days, many are of the ETF variety, so we will be ready when it happens, It might take weeks, but it is coming. This is the biggest no volume joke of a market that I have seen in my 25 years of trading.

This market could go haywire to the upside or get hammered. I don’t know, but with close to zero rates, where else will investors go? Probably higher, but I have raised stops tonight. My gut says that Bernanke rolls over and continues quant. easing and the sugar high will continue.

Frankly the economy and the market look broken to me, but I am respecting the charts for now.

We are very busy with active names on the list, so no need to add tonight.  Most of our names just grunted along today. I will be trading until about noon tomorrow, as I have meetings in the afternoon. Trade well and don’t try and be a hero, this volume is horrible.

The bulls are still in charge, see you n the morning.

Joe

Tuesday, August 10, 2010
Economic
08:15 Canada July Housing Starts
08:30 US prelim Q2 Non-Farm Productivity, Unit Labor Costs, Canada June New Housing Price Index
10:00 US August IBD/TIPP Economic Optimism, June Wholesale Inventories
13:00 US Treasury’s $34B 3-yr note auction
14:15 FOMC rate decision
16:30 API Crude Oil/Gasoline/Distillate Inventories
Events
Jefferies Industrial Conference. Oppenheimer Technology & Media Conference. 07:45 ICSC/UBSW Chain Store Sales. 08:55 Redbook Retail Sales. ABC Consumer Confidence. Trades Ex-dividend: ETR $0.83, HLF $0.25, TJX $0.15, WYNN $0.25.
Earnings
Before the Open: AYR, ALLT, AIT, CVG, DPTR, FOSL, JASO, NURO, NXG, SMG, SYY, TECH, TDG, XIN, YTEC, HOGS. After the Close: AONE, AOSL, ARI, CFN, CREE, FNGN, HMIN, JAZZ, LDK, LTRE, MYGN, STRI, SPWRA, TMH, URS, DIS.
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