Bears in stocks and interest rates getting slapped repeatedly as the Fed leaves no doubt it will punish anyone getting in the way of their drive to preserve a recovery being threatened by a Europe known for creating world class events which affect the world badly. Fed clearly does not believe the ECU will be able to work out of this mess without some type disaster. Thus they have to create a fall back position where the world can seek refuge. The action is really just a redo of last year for stocks and, had it not been for the ECU then, indexes such as the S&P 500 would have had a great year.
What could screw up the Fed's intent? All of us participating in the markets daily know the monster never sleeps and market direction and volatility live with randomness. Just as the Fed was sure of the health of the housing market in 2006, it is sure of its ability to corner investments into selected alternatives with more risk than the 10 year. Structural price events, flash crashes, panics, and rolling downside momentum are the unpredictable side of a sure thing intervention.
For bulls, be happy and beware.
