Nothing Done

263
Wed, Aug 1, 2012 - 3:23pm

As expected, the politically-handicapped Fed announced nothing new today. I'm left wondering what the heck The Bernank and his minions actually did for the past 30 hours. Probably hung out by the pool and knocked back a few pitchers in the hotel bar. A late morning start today after overdoing it at The Capitol Grille last night. Then, adjourn early in order to catch the next flight home.

Whatever, much ado over nothing which has allowed The Cartels to (predictably) game the specs. Run prices UP last week. Run prices down this week. Reverse tomorrow on the ECB or Friday on the BLSBS. Finish the week neutral and unchanged. We'll see.

Rather than give you a Fedline rundown, I figured I'd just C&P the bullets from ZH. Here you go:

  • FED SAYS IT `WILL PROVIDE ADDITIONAL ACCOMMODATION AS NEEDED'
  • FED REPEATS EXCEPTIONALLY LOW RATES AT LEAST THROUGH LATE 2014
  • FED SEES INFLATION OVER MEDIUM AT OR BELOW MANDATE LEVEL
  • FED TO KEEP REINVESTING HOUSING DEBT TO MORTGAGE SECURITIES
  • FED SAYS HOUSING SECTOR REMAINS DEPRESSED

Nothing about ZIRP. Nothing about Twist. Nothing about QE. <yawn>

And here is another look at the daily charts, this time showing the long-term ranges, within which we continue to be stuck.

And the grains are trading almost exactly as hoped. Once they broke last Monday, we knew a rally would come that would either create a double top or a lower high. With that behind us, I expect more weakness as the current forecast calls for patchy rain and somewhat cooler temps. That said, look at this map:

And the 7-14 day forecast shows a return of the heat wave...and it may be even worse than early-mid July. For now, I'm standing aside but, if we can get some follow-through selling that takes corn down to or even below $7.50 and if beans can fall toward $15, I'm going to have to buy in. The damage is already done in corn and a new heat wave next week could seriously cripple soybean production. Needless to say, I'll be watching this closely in the coming days.

OK, that's it. The week is far from over so don't go throwing your hands in the air in disgust and walking away. Tomorrow will be very interesting, too and, of course, Friday will be Friday. Hang in there and have a great evening. TF

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  263 Comments

Aug 1, 2012 - 3:26pm

First

No way?

TitanAe
Aug 1, 2012 - 3:29pm

Thank you !!!!

Thanks Bernake !!! I love shorting the market its much more easier !!!

lodmund
Aug 1, 2012 - 3:29pm

gold always falls within a

gold always falls within a couple of days of Alf Fields publishing one of his daft EW projections claiming that a massive rally is just around the corner

QE to infinity
Aug 1, 2012 - 3:30pm

2nd?

Top five

Aug 1, 2012 - 3:32pm

You Know, the Childish Glee is Cathartic

I can join the ranks of those lucky enough to log in at exactly the right time to claim their "First" position trophy. This reminds me of childhood. We had a little bicycle race track, that we all rode our bikes on. It was no big deal, just a dirt trail, some jumps. But let me tell you, getting bragging rights was something else. Especially in an Olympic year.

And the Gold Medal goes to . . .

<choking up, struggling to mouth words through the joyous emotions flooding the moment>

I would like first thank the TURD, for making this all possible . . .

Ok, silliness over. Thanks for indulging me. If you put me on ignore for this, no soup for you.

Mike
Aug 1, 2012 - 3:32pm

Seems

Like they are waiting for something.

What do they know, we don´t.

Maybe a big event around the corner that will give them cover to do what they will do.

Big Dutch
Aug 1, 2012 - 3:36pm

KIND OF BIG DEAL?

Am I the only one that thinks the Fed saying:

"will provide additional accommodation as needed"

VS

"Committee is prepared to take further action as appropriate"

at the June meeting is a big deal? Every change means something. They're saying there WILL be more QE vs. saying they're prepared to provide more. Would have thought people would make a bigger deal of that.

GoldMania3000
Aug 1, 2012 - 3:37pm

@KIND OF BIG DEAL? yes big dutch you are right

Jim Rickards@JamesGRickards

My translator says "will provide additional accommodation" = "whatever it takes."

  • As Jim sincilar also says the fed will not let it's boss down.
bern
Aug 1, 2012 - 3:40pm

Paul Subcommittee to Examine

Paul Subcommittee to Examine Sound Money and Parallel Currencies

Congressman Ron Paul, Chairman of the Domestic Monetary Policy and Technology Subcommittee, announced today that the subcommittee will hold a hearing to examine sound money and parallel currencies.

“The American people have suffered for decades from the declining purchasing power of the dollar. The Federal Reserve has abused its position as the monopolist issuer of currency to enrich Wall Street and impoverish Main Street,” stated Chairman Paul. “The Fed can effectively create money out of thin air with impunity, while creators of gold and silver currencies face jail time. This is a travesty. The only way to stabilize the economy is to return to monetary freedom by legalizing Constitutional money. Until the American people are free to choose the money they want to use, and not what the government forces them to use, the economy never will be truly stable and any recovery will be illusory.”

The hearing, entitled “Sound Money: Parallel Currencies and the Roadmap to Monetary Freedom,” will be held on Thursday, August 2nd, at 10:00 a.m. in room 2128 of the Rayburn House Office Building.

Witnesses scheduled to testify:

  • Dr. Richard Ebeling, Professor of Economics, Northwood University
  • Nathan Lewis, Principal, Kiku Capital Management LLC, and Author, Gold: The Once and Future Money
  • Rob Gray, Executive Director, The American Open Currency Standard

https://paul.house.gov/index.php?option=com_content&view=article&id=1998:paul-subcommittee-to-examine-sound-money-and-parallel-currencies&catid=63:2011-press-releases

The witnesses submitted some written documents for the hearing:

Ebeling: https://financialservices.house.gov/UploadedFiles/HHRG-112-BA19-WState-REbeling-20120802.pdf

Lewis: https://financialservices.house.gov/UploadedFiles/HHRG-112-BA19-WState-NLewis-20120802.pdf

Gray: https://financialservices.house.gov/UploadedFiles/HHRG-112-BA19-WState-RGray-20120802.pdf

Link to live stream (supposedly): https://mfile.akamai.com/65722/live/reflector:36166.asx?bkup=36167&prop=n

thurd aye
Aug 1, 2012 - 3:45pm

Am I the only one who wants

Am I the only one who wants to know what has happened to Number 47? He is one of us and could very well be in prison by now.Has he been to court ? '47' let us know please what your fate is,or when you have to attend court.And did you get your good hammer returned to you?

:o))

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

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Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

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