Post FOMC Day Update

And once again the monthly FOMC ritual is behind us. I wish they would announce right at the market open as making everyone wait into the afternoon turns the day into nothing but a wasted session. As anticipated the Fed wimped out again and is keeping interest rates untouched. When are the great unwashed masses finally going to realize that we live in an economy subservient to the top 1%? Which means no real GDP growth ever again – because…. drum rolls… here it comes… we don’t make anything anymore in the entire Western hemisphere. You bloody well cannot sustain a country’s economy on service sectors, software companies, strip joints, massage parlors, Hollywood, and the financial industry alone. Face it – we live in the final throes of a dying empire and quantitive easing is here to stay. There is no alternative until the day labor cost has found an equilibrium across the planet and we are still about three four decades away from that.

Meanwhile over here in Europe not a day goes by where I’m not subjected to bad economic news on Greece, Spain, Italy, or Portugal. What, it’s only been eight years at this point and how many Billions in economic aid down the tube? And by ‘down the tube’ I mean loans which will never get paid back and which wound up in the pockets of bond holders who should damn well have taken the losses they bloody deserved. Instead it’s extend and pretend courtesy of the Germanz who in return can’t take a vacation without some Greek waiter dropping a loogie into their moussaka. Mahlzeit! As the old saying goes – no good deed remains unpunished.

The EUR/USD now officially serves as our printing press ratio indicator. Meaning its sole underlying driving force is the ratio between quantitive easing programs courtesy of ECB and that of the U.S. Federal Reserve. If Sir Draghi Print’A’Lot churns out more than the Ole’ Yeller the Euro tanks and the Mole is all smiles at his Spanish ATM. But apparently the good days are over now and the pendulum is going to swing back the other way, as the Fed has completely lost all credibility in regards to raising interest rates in the near future – or ever. Hey, I can’t blame them – they are stuck between a rock and a hard place, a.k.a. Bernanke’s and Greenspan’s legacy. The former by the way just caught himself a cushy new job at Pimpco – it was finally time to cash in those chips.

Crude punched higher today and is now tickling its daily NLBL – see I told you not to give up on that one just yet. Admittedly it really needs to get its groove on however – a few more daily bars  below the 60 mark and Monty Python’s foot may come stomping down. It’s time to start the squeeze!

Finally on the equities side the churn continues and I’m glad I’ve got no dog in this fight right now. It seems to me that 2088 has a pretty good chance of holding. I didn’t grab a long there today but this would have been the place to get exposed. Until we retest once more I suggest you remain in a holding pattern and focus on Forex and the futures.

Alright, that’s all I have time for tonight – fortunately tomorrow we’re back to our regularly scheduled programming. See you on the other side.

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Cheers,