The FOMC statement was released today and Mr. Bernanke had his press conference. As should have been expected, it was managed perfectly: the statement was released with the usual nonsense, and the press asked Mr. Bernanke puffball questions…like they ask a president.
According to Bloomberg…Federal Reserve Chairman Ben S. Bernanke signaled the Fed will maintain its record monetary stimulus after ending large-scale bond purchases in June, while the need to contain inflation means further easing is unlikely.
Said another way, the free money for the bankster cabal will continue unabated.
“It’s not clear that we can get substantial improvements in payrolls without some additional inflation risk,” Bernanke said at his first press conference following a meeting of the Federal Open Market Committee. “Ultimately, if -- if inflation persists or if inflation expectations begin to move, then there’s no substitute for action,” Bernanke said. “We would have to respond.”
Said another way, the Fed doesn’t care about current food and energy inflation but, if by chance, Bernanke’s destruction of the US dollar continues as planned – then maybe…just maybe, the Fed will do something about it. Until then, Bernanke & friends at the FOMC just don’t care.
When the Q&A session began, Bernanke was asked about the rise in gasoline prices and the Fed influence due to the drop of the US dollar. Bernanke’s reply was straight from the lips of Bart Simpson – “I didn’t do it.” He went on to say "but there's not much the Federal Reserve can do about gas prices per se."
Funny thing happened on the way to the press conference though – as Benron was bloviating, gasoline futures spiked about 4-cents per gallon and the US dollar was hammered to new lows. Coincidence? Not a chance!
The real markets know this man is a joke and price his madness accordingly. Equities also know Benron is mad, and price his folly into stocks: forever higher…until he is stopped.
Trade Date: 4/27/11
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