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.
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