Good Monday morning, and welcome to the melt up.
Japanese stocks are bouncing 2 – 3% after getting schmeissed last week and month. From a 96% twelve month gain, we saw the yen strengthen. Not coincidentally, the Nikkei Dow fell over 20%. Last week saw the Yen’s biggest weekly advance in four years. That counter trend rally seems to have reversed, and once again the Yen is falling — its down nearly 0.5% versus its 16 most-traded counterparts today.
This week we have the Federal Reserve meeting, and you should, if you have any situational awareness whatsoever, already know the outcome of that meeting. Bernanke to Hilsenrath to anyone-who-is-paying-attention is the FOMC version of baseball’s Tinker to Evers to Chance.
I believe it is an analysis of the facts and history, and not a forecast, to suggest that the FOMC will stand pat. Anything can and will happen — Humans are involved — but the odds are very much against it.
And if you want even more bullish data, Bloomberg reminds us that “equities tend to rise when the Federal Reserve begins reducing efforts to stimulate the economy.”
Back shortly . . .
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