Fed Never Say Die

Fed has indicated it will stop short of nothing to accommodate recovery. There is a danger in this strategy in that while it does reiterate the ' never say die ' attitude of the Fed, it is also evident just how severely the capital system is reeling. It is not a stretch to say market confidence is highly fragile and that it knows in a peculiar way the Fed is not sure what will work. Reacting to an economy where companies are clearly lowering their debt and cashing up is not a recipe of higher stock prices. The retail end of investment is dead and all that is going on, although considerable, is the massive repositioning of sector exposure. That is good for a bottom but not much for a sustained bull trend. The technical price picture for the indexes remains shaky and subject to reversals as more price work needs to be done.