I am very sure that Bernanke knows that tough language on inflation will mean a stock market collapse and further consumer loss of confidence. It is highly unlikely that the Feds will want that to happen, regardless of CPI data last week. Expect some kind of language taking into account the weakness in housing.
Don't forget that huge NDX February gap which start at 1800, almost 40 points higher from where we are now (3/19 post). This is the upside risk bears face. On the other hand, the VIX is at lower bands (see chart) and that tells me any rally could be short-lived.
Don't forget that huge NDX February gap which start at 1800, almost 40 points higher from where we are now (3/19 post). This is the upside risk bears face. On the other hand, the VIX is at lower bands (see chart) and that tells me any rally could be short-lived.
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on Wednesday, March 21, 2007 at 3/21/2007 11:56:00 AM.
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