No Fear

The market loves Bernanke.  Even though many question his policies, the risk markets love him.  Traders don't want to be short ahead of another dovish spiel from Banana Ben.  But what is a bit strange is the lack of strength in commodities and the strength in stocks.  Usually they move together, especially ahead of the Fed.  This commodity up move looks tired, as does silver, which is symbolic of the whole commodity complex and hatred for paper currencies.

With today's action, I don't think the normal event trading template applies.  We don't have any fear of Bernank.  Instead, it is almost a sense of glee that he will pump up the market even more.  The Fed is now linked to higher prices, so that fear of being long ahead of an event doesn't really apply in this case.  I don't think its a buy the rumor sell the news phenomena, or the normal event trading phenomena.  I can't really game it. But I do think commodities will be lower than here on Thursday.