The FED is scheduled to announce its rate decision and its views on the overall economy tomorrow; if and when they might start tapering the QE program. Though given the political gridlock in Washington, any hope of QE Taper, is utterly futile. One should not confuse this as a sign of Bullishness; in fact, it is the exact opposite. The longer The FED delays tapering QE, the more damage it will do to the overall economy, and distort the dynamics of the Financial Markets.
I expect tomorrow’s FED announcement to be Neutral to Mildly Bearish. Gold and FX as always, will be volatile. The ideal trade tomorrow will be BUY going into the FOMC announcement, and Dump .i.e. SELL your positions 5-10 mins before the FOMC announcement.
Either way, The FED and Mr. Obama wont stop until the S&P 500 closes above 1800 to end 2013 on a positive note, as all the scandals are not good for business in Washington.
