The Morning Morsel-The Fed Isn’t Your Friend

How come Superman could stop bullets with his chest, but always ducked when someone threw a gun at him?

For those of you too young to remember, the Fed always used to whack you while you were sleeping. Something happened over the years, probably a social shift in an effort to be polite, thoughtful and correct. Kids can’t lose at dodge ball and the teachers union insists on marking all grades in purple these days, can’t hurt someone’s feelings with a red mark–kid might hit a bell tower with an Uzzi. Lately though, the Fed’s warnings have  had warnings, every word meticulously considered, God forbid we we’re caught off guard anymore.

Yesterday however, the element of surprise returned, (very impolite) after a very long time, it happened after the close of trading, and one day before options expiration. Had to be Rahm’s idea, he couldn’t find a hooker in Bangkok on New Years Eve.

Hey, I dig the rate hike, it had to be done eventually, we’re not Japan like the bears think, although things do suck. I prefer cotton over silk anyway.

I shorted some more XHB  and some FAS in the aftermarket and sold my commodity positions.. I may cover by lunch, we’ll see how it goes.

Friday, February 19, 2010

Economic
08:30 Jan CPI (last m/m 0.1%, y/y 2.7%; ex food & energy last m/m 0.1%, y/y 1.8%), Jan CPI Core Index SA (last 220.774), Canada Dec Retail Sales
10:00 Mexico rate decision
Events
08:00 Fed’s Dudley to speak. Trades Ex-dividend: AVP $0.22, JNJ $0.49.
Earnings
Before the Open: AMWD, AGP, BRC, BAM, HMSY, HUN, IBI, JCP, LPNT, PAG, PCG, PNW, SHPGY, SRT.


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