Fed Day Again

Tonight’s post will be brief (we usually like to say “short” but you already know that) as it is getting late.  Once in a while, the staff here at the Wednesday Update gets a night out and tonight it was to go to the Minnesota Wild hockey game.  Thanks Jason for the tickets.

There are two notices we would like to mention tonight which we have neglected to mention the last few posts.  The first is that the folks over at Elliottwave.com are having a free week this week which expires on Thursday.  You need to sign up for their club EWI in order to see some valuable information but there is no fee for signing up.  Of course, they would like you to take their service which is why they are advertising some.  

Next, the True Contrarian posted on Monday and he’s always a good read—the bold section part way down the page is the new info.  He comments on housing, the stock market and the dollar.  Worth the time especially since this post will be so short.

Market action/Opinion/Analysis all in one:
The market managed to continue up on Tuesday which may mean the Dow wants to head up to that 12,500 number we talked about the last couple of weeks.  Tuesday’s volume didn’t amount to much so these rally days are not giving us much from a technical standpoint.  We have in the back of our mind that surprised will come to the downside now that the market has turned down and we will not be surprised to see some downside at a moment’s notice.  

News:
Remember the FOMC will make their announcement on short term rates just after lunch on Wednesday (1:15 CDT).  The rally we have seen in the market seems to indicate that the market expects the Fed to lighten up on rates pretty soon, at least in their comments this week.  If these words don’t appear on Wednesday, there will definitely be disappointment.  The market thinks that the Fed needs to address subprime and some indications that the economy is not as firm as once thought, and it needs to address those issues now.  We’ll see what they have to say in the afternoon.

Dow Industrials:  12,288.10  +61.93
VIX: 13.27
HUI:  332.51
QQQQ:  43.58
QQQRR: 1.47 bid
RYVNX:   17.21
RYAIX:  21.69
RYCWX:  36.79
TLT:  89.71
BEGBX:  13.96