Wait for the Fed Again (Tired Refrain)

For whatever reason, stocks were broadly higher the day before two major events: the German Constitutional court ruling on the legality of the ESF and funding of various debtor nations, and the FOMC policy announcement which will be announced around 2:00 pm EDT on Wednesday. At the conclusion of the meeting, Fed chairman Ben Bernanke will either announce a new round of QE or he won't, thus ending all speculation.

The chances are good that the German high court will rule the ESF constitutional (since it has already been widely leaked that they will do so), though skepticism remains on Bernanke's move. Market reaction will be swift and severe, either way, so it's a somewhat fruitless endeavor to speculate so close to the event.

Sadly, but truly, this is what 21st century investing has become: betting on policy actions by central banks and high courts. One longs for the days when fundamental analysis actually could result in the success or failure of a trade.

That's what German pragmatism and socialist central planning will get you. A mixed bag in a crooked, convoluted, highly controlled and coordinated market system on a road to nowhere.

Yuck. (It seems one hears that opinion more and more these days.)

Dow 13,323.36, +69.07(0.52%)
NASDAQ 3,104.53, +0.50(0.02%)
S&P 500 1,433.56, +4.48(0.31%)
NYSE Composite 8,246.15, +53.75(0.66%)
NASDAQ Volume 1,596,002,750
NYSE Volume 3,518,323,250
Combined NYSE & NASDAQ Advance - Decline: 3530-1983
Combined NYSE & NASDAQ New highs - New lows: 290-38
WTI crude oil: 97.17, +0.63
Gold: 1,734.90, +3.10
Silver: 33.57, -0.07