There’s no #%#@ rate hike!

There has been a bet placed by the market over the past week or so and that is or was that the fed will raise rates sooner rather than later. This mantra has been going on for 22 months. 22 months ago, the fed stopped printing and since, has teased and yapped away rate hikes just about every month. But since, there has been only one rate hike…which caused a 10% drop in the market. It was not until Europe and Japan picked up the slack with an amazing $200 billion/month printing festival did markets get life again. Yes…this whole sham is worldwide coordinated.

Only one problem: the ISM number came out this morning and to be nice…it was crappy. This quickly got markets this morning now thinking they won’t raise so soon as the dollar is sinking again, gold is lifting and the financials also sink as they rallied under the bet of higher rates. Of course, we get the fake employment number tomorrow which may or may not change the playing field. Yes…this is what we deal with…the decision making of a select few people who would buy rotten lemons for a lemonade stand.

We are of the camp there is no way the fed hikes as the data dependant fed just got hit in the head…and it does not take a strong hit to stop them dead in their tracks. Actually, they would be blown over by a 5 mph wind when new data comes out. On top of that, the politicized fed has no interest in hurting markets before the election.