Tuesday, September 21, 2010

All eyes on the Fed

We'll see whether the Fed tips their hand on the next steps toward QE II, but the market is leaning toward breaking out on the upside despite the wealth of negative trends.

* Take the housing starts data. This is a relatively small sample and can be affected by a number of factors, but housing starts jumping 10% from July just speaks to the problems we face. We have a glut of housing right now and the last thing we need is MORE housing.

* I mentioned this to friends recently - lots of smart people are plowing (pun intended) their investment dollars into .... farmland?? I think this has to do with people with lots of money diversifying, but it's interesting.

I'll follow-up tonight after the Fed meeting.

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