Monday, September 20, 2010

9/20 11:30

Orthodox high still 1132.75.  Can't see > 1134.25 or the latest move is an up impulse.  DJI beyond 10,628 says the same thing.
A lot of hope is going into the FOMC meeting tomorrow.  Considering that nothing will be done I find such blind faith has a childlike quality.  Bonds are not selling off on this rally and in fact are up a tick.  This is presumably because Ben will buy more bonds?  They announced buying T-bonds from maturing mortgage-backs at the last meeting.  In order to buy more they would have to agree amongst themselves to expand their balance sheet.  The odds on this are slim.

1 comment:

  1. Ben will be ultra gloomy tomorrow. The smart money is moving to bonds today,they know the rush to bonds starts tomorrow, and if I1 is correct, continues until just around the next Fed meeting in early November.
    All just a game to the Fed.