Huh?

[please read whole post & comments. I keep adding PS's & thinking]

I don't see anything good about that Fed statement. I suppose the bears figured the Fed indication that the economy was still strong made them concerned about their subprime blow-up spreading thesis. I guess they are covering. I tried a quick short but after it held for 15 minutes, I covered. Oh well.

No doubt if this holds the charts will look bullish, as I discussed in prior posts. Gotta go with the charts until I see a reason. Maybe the Fed will wait a long time & give inflation a chance to weaken this summer. That's gotta be the only reason to be a bull. Maybe that will work out. I'm wary but will go with the trend.

PS: update - I heard Bill Gross on Bubblevision. Erin re-read the statement & from that & Bill's comment, the prior "tightening bias" was removed. So that's what my first post had anticipated - I missed that in listening the first time. I should have read it myself. Darn. So the beefers are running prices up on that removal. The Fed now has a neutral bias - no bias. Purely data dependent. Erin is by far the best commentator on Bubblevision.

PPS: After thinking it over, I think the Fed interpreted the subprime problems as proof their prior tightening policies worked AND that they had gone far enough. Hence no tightening bias. That makes sense to me. So they wait until the subprime problems work through the economy. I presume their model indicates inflation will lessen this summer. I hope it does. Uh oh, that word, "hope" is dangerous.

PPPS: That qualifies as an IBD followthru day - the Nazz was up over 1.7% on higher volume. So the trend is up, buy dips. The path of least resistance is now up. Don't fight the tape. Don't fight the Fed. What a change! I'll write more in the AM.