The T Bomb - Taper time

It’s a very busy week for economic data. Investors will get their first look at second-quarter gross domestic product on Wednesday. Economists surveyed by MarketWatch forecast the data to show the economy grew at an annualized rate of just 1% after a mediocre 1.8% expansion in the first three months of the year.

Investors are closely watching the Fed for any further clues as to when it may begin tapering its purchases of government bonds. Concerns over a slower pace of stimulus was tied to a pullback by stocks last month, though equities soon recovered to see the S&P and Dow head back to record territory.

May I take a moment and remind you want happened last month back in JUNE when we had the FOMC meeting.

So..... do you remember what happened???.....

THIS!....

fed announcement sell off

Since then the FED has done nothing, no tapering, no withdrawal of stimulus, no shouting, just more B.S.  We have skidded up higher, and I find it uncanny the market is acting the way it is right before this major announcement. This might be a bear trap in the making as traders are starting to think about what happened last time. It could be a situation of ROPE IN THE BEARS, Before sending us up higher. Sneaeky!, but I can see that happening. It would be a good way to take money off the novice traders out there.

My guess (and it is a guess) is that nothing changes, Somehow the charts do not look like they are about to drop like they did back in JUNE. So my guess is that the news is coming out in charts first here, yes, no taper has started and they will not drop the T Bomb word just yet. It may however come into their vocabulary later down the track, but for now the market is in a holding pattern.  We shall see.

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