Inflation – It’s a Pleasure to Meet You!

So Ben and the Fed gang just got out of their Rate setting meeting. And as everyone expected, the rates were cut by a quarter point.

Now, I had these delusions of Ben actually making it a point to say that inflation is getting out of control, and that the risk of inflation is too high.

Of course, he didn’t do that at all. In fact, from this meeting I got only the slightest idea that rates might not get cut again. But there were no hints whatsoever of rates going up in the next few months.

So long as rates don’t go up, then inflation isn’t being battled to the death.

In other words, the commodities bull is alive and well. And don’t be shocked if the market retraces for a few days and then goes on to rally big.

It won’t last long though. So don’t get caught up in it.

Oh, and I placed a call option today – the one I referred to yesterday. The stock itself was up over one percent all day. Then when the rate announcement came out it went up another half percent. But as soon as it started coming back down, I sent out the trade alert.

This should be a nice one