Friday, September 14, 2007

Bernanke Charts

There is no doubt the Fed would be satisfied to see most futures charts head south for a time. The ten year, oil, wheat, gold, indexes, and others sliding in a dull but hefty correction as the Fed
provides an inflation fighting environment for the years ahead. This kind of squeeze on speculative investment initiated shortly after Bernanke took over is hard to orchestrate especially when wrestling with the financial instruments created over the last ten years. Projecting confidence while promoting corrections is even harder as free market wall street begs for a help. Save the little guy usually means save the big guy whether on wall street or across the vast agricultural lands covered by farm subsidies. Saving the bull trends is the current battle. Many of these charts look toppy or tired. Bernanke would like to give them a little push lower.