..'watch your (FOMC) language"..pt 2

Basically,  this market is typically doing better when there's no event.  Not that today was a real event.    A event like the FOMC meeting today, more often than not,  provides an excuse to "sell off the news"!   Not good news in this case as recently in the markets, just sell off the news.   Fed did provide a pretty upbeat statement,  however..as we pointed out as a lead….watch the language and today’s still included …“economic activity is likely to remain weak for a time”,  even if the context might have been changed a bit, it still was there.   A reason to sell -off possibly,  we said. 

We don’t care what the reason for sell-off was or if we were right.   Surely, there are many opinions tonight.   All we care is,  it happened and now we look ahead and see 1058 area and than 1038 as support. 

Based on the recent market action, we all knew that things are getting better and worst is behind us.     What we wanted to know, at this point, is that how much better things are now and at what rate things are improving?    This, unfortunately, cannot be answered by Fed or anyone right now.    Why?   Well, we have thousands of Corporate CEOs that are waiting(dying) to inform us in the coming earning season.

Fed merely monitors the overall economic data and acts upon them.    For individual company, they see every single area of operation that affects our economy.    So, it won't be too long before we get to hear from them starting tomorrow night with RIMM.  Hopefully, we'll see a nice growth number from RIMM because they are still considered a growth oriented company.     More Blackberry sales means more business users and more business activity.  On the other hand, we’ll see if this is in the stocks price, no matter what they say.   Well, it's up to analysts to decide later, anything positive they reveal will give us a better look into this earnings sesaon,  even if the initial reaction may prove otherwise due to today's action serving as a lead to any selling off news..good news.


Speaking of the market strength, we have an interesting test coming up.   We’ve talked ’ IPO’ importance,  SNDA, a major online video game company based in China, is spinning off its most lucrative business and trying to raise nearly $1 billion dollar via. an IPO (GAME)   Oh yes, it's not a typo because they just increased the offering today and it's nearly a billion.    This will give market participants some idea how much appetite people have for this kind of thing.  We also have AONE  and it has raised it’s offering price.  As we said, we want to see market fever or not here,  to indicate health of market.

Bottom line, don't be disappointed by today's "Fed Reaction" because it really isn't a big deal.  The statement was largely as expectated.   All they had to was remove that line we talked about to move the market to the upside,  but instead said they see a relatively ‘sluggish’ long period ahead.  FED didn‘t want to take the chance and say things are too rosy before they are proven.   Their conservatism made the reversal.   A surprise IJC number tomorrow and those pressing shorts today will be washed away..again…The initial upside was just short covering and later it was just sellers appearing after no real bid appeared. (volume).   Dip buyers didn’t come in, we saw this recently remember till things settled down and then buyers came in for this recent move to new highs.