The Fed started their two day meeting yesterday and today at 1400 hours EST the FOMC will announce the results of their meeting which will be followed by a press conference at 1430 hours EST. Ben, the Septic Tank, Bernanke will have to face some tough questions as the socialist Dumbama who is currently on a little trip around Europe after attending the G-8 Summit in Belfast, North Ireland where he Russian President Putin played him like a well-trained puppy, basically stated that Bernanke is fired.
I am not even bothered to listen to his press conference as I expect equity markets as well as the USD to tank like usually. Every time the Septic Tank opens his mouth and attempts to communicate plenty of feces is spilled, dumb money is shocked and smart money collects. He has already rattled the bulls as he noted that the Fed may taper with QE which send the first shock waves across global equity markets. Dumb money was quick to adjust some of their bullish bets and the Nikkei 225 plunged into a bear market already.
While I do expect volatility to pick up right after the announcement and into the New York close, I position all our traders to take an early day today and simply enjoy the finer things Monte Carlo has to offer. All our funds and their trades are well positioned and the last thing I need is for someone to panic as Bernanke will initiate a sell-off in late afternoon trade.
Bernanke will most likely announce that the Fed will taper QE sooner rather than later as he clearly knows that he will no longer be allowed to abuse the Fed with his moronic approach and idiotic tactics which were designed to artificially prop up financial markets based on hope the rest of the economy would follow suit. It did not do so and the U.S. economy is a dead patient on life support. Bernanke will signal that the Fed is going to lower the medication until it pulls the plug completely.
Janet Yellen is rumored to become the first female Fed Chief and Bernanke may try to crush markets now to a certain degree until Yellen, should she indeed be hated enough on Capitol Hill to be offered the plague of exiting QE completely, takes over and batters financial markets into the ground. Most dumb money mismanagers believe that the Fed exit will signal economic strength which is the reason why dumb money always ends up holding the bag as smart money cashes out and eat their lunch.
Bernanke stressed the fact that the Fed will be data dependent and will not taper or reduce QE until the U.S. unemployment rate drops to 6.5%. Well, it is obvious that his plan was flushed down the toilet just as everything else the Septic Tank has attempted. The only thing he has accomplished is to kick the can down the road, display his idiocy and now he will be forced to pass the torch to another unqualified individual and see if that person will fumble the ball or can keep it kicking down the road until the next person will have to pick it up.
Prepare your portfolio for a rout on global equity markets. I am sure to enjoy this evening as I host a small private party down at the yacht club. Dumb money will get butchered during the last two hours of New York trading and as Dumbama is finishing his speech in Germany where moronic Germans approve more of him than the country he defrauded with his presidency I am applying the finishing touches to our trades and ensure we are not going to violate our risk management protocol as Bernanke will screw it up once again.