Hey Ben, Do the Right Thing

Ben and friends report on Wednesday whether or not they will continue cutting Federal Reserve rates. The buzz is, or at least the hope is, that the cutting will come to a stop. Most expect a 25 basis point cut, and a declaration from Ben that cutting may slow down or come to an end to keep inflation in check. Come on Ben, "Do the Right Thing!"



The thing about the market is, that it's all about meeting expectations. If the market doesn't get what it wants, then it will likely sell off. So, unless there's some grim and dark thing hiding in a dark recess, something only Ben sees, it's time to move from solving liquidity in the money supply and tend to curbing inflation.

Until the Fed reports on Wednesday (2:15 PM EST) expect big money to be taking it easy. This was evident in yesterday's low volume, and I expect that to be the case today as neither side is willing to take a stand. There's no sense in committing one way or the other until the near term becomes more clear. From a trader's perspective, this should be a time to reflect and not get too aggressive.

I observed recently that the big money seemed to be rotating sectors from commodities to financials, and that observation is becoming more clear each day. So gold and agriculture are feeling that shift, and the rising dollar should put pressure on oil to come down as well. If oil and the dollar continue this way, then we'll have a good chance to break through the down trend in a significant way, as I mentioned in a previous post.

What do you think the Fed should do?