Busy week ahead

A lot of economic data (inflation, job) plus FED meeting, and do not forget earnings from MCD, 3M, american express etc, the next week will be one of the busiest week. Sorry I was wrong on last thursday's blog, I must have looked ahead when I wrote we would see job report last Friday.

Obviously, none is more important than Wednesday's FED decision. Based on the barrage of critisism of the FED's actions, it will be interesting to see what the FED will do and how the market react. As always, caution needed before and after the FED annocement.

Right now, the market has put the 50 bps point cut at 75%. Anything short of that could spell trouble. However, even if FED satisfy the market's cry for help, it might not be enough. The biggest thing is the confidence about FED's decision making. the rumor is that the selloff of last Monday was due to the fraud trades by a french bank. If that is indeed the case, then, the FED is duped...

Tomorrow could be another rough day based on the actions of oversea market. but a bit of data could provide comfort. when pre-market gapped down sharply, the market normally closed higher..  See the graph below
 


Anyways, good luck to all of you out there