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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: UncleBigs who wrote (65017)	6/30/2006 2:24:54 PM
From: gregor_us	Read Replies (2) \| Respond to of 110194

The FED has Had the Perverse Effect of Deferring the Bear market, which was most likely to unfold right about now, had they kept to the Pause path, never screamed about inflation, and stopped at 5.00% at yesterday's meeting. The market would have continued to rally even higher into the June meeting, with Gold, Copper, Emerging Markets, blah, blah, having gone at least as high if not higher. Then, when the FED paused yesterday, all that stuff would have begun its inexorable decline based on smart money exiting at the correct moment of the trade. What's happened now is they have totally dicked with the textbook Presidential 4 year cycle, put a severe smackdown in the early part of the year, rather than in October, and probably rebuilt this secular bull market for another 9 months. The incredible pounding that sentiment has taken over the past 6 weeks is only comparable on a raft of indicators to 9/11 and the lows of 02, and 03. What a freaking launchpad. For people who cheered on the FED's intervention, welcome to the results, I say. They have cleared the decks and set the stage for a re-load, when most of these markets would have corrected all on their own anyway. Hilarious. G