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