After the FED

FED did what we expected, NOTHING. The FED is in a tight spot, on one side, they are facing an inflationary climate and on the other side the FED is dealing with an ever weakening economy. Where do we go from here? well the day after the FED announcement is usually an up day but that didn't happen on the last FED announcement. What I would personally love to see here is a tradeable bottom of some kind to push us into earnings, if we don't get a tradeable bottom in here in a few days we are doomed to go much lower. My longer term target are still the same DOW 9000, S&P 1050, Russell 450 and I will stick by these target over the next few quarters but these are my ultimate targets for those indices. Speaking of targets I am now increasing my target on Oil based on stuff I am readings and have come up with a conservative target of $225. I think this target will be achieved within 24 months!!!!!!
RIMM reported after the close and wow! it is being cracked. One more evidence NOT to listen to Jim Cramer who has been telling people to buy the stock before earnings. They missed EPS and lowering targets and I think this stock will see south of $100 before September. Alot of people think tech is immune from a weak economy BUT nothing is immune from economic weakness. Do you believe parents will be giving their kids money to buy ipods and imacs when gas is $9 at the pump, heck no, let's be real here people.
In an downturn people will only spend on necessities and even this time people might not never be spending on that as their net worth is vanishing with a lower stock market and falling house prices. One stock I think is a decent play short is WHR (Whirpool). The continued weakness in housing makes this a perfect stock for the shorts. Yes it might be late to the game on this one since it was as high as $90 two months ago but really if it bounces how far can it really go.
Lets see tomorrow what they come out and do here. Next week is July and usually carries a bullish tone into that holiday, so lets see what happens.
Hmm Anyone notice we are now at 11811 on the DOW!!!!!!!!!! We are slowly sinking! Everyone got excited at 13000 in May and I said dont be fooled. Who is the fool now???

MARKETJEDI

Warren Buffet

OMAHA, Neb. (AP) -- Billionaire Warren Buffett has already said he thinks the U.S. economy is in a recession, and now he says the economy is getting worse.

Buffett told CNBC in a live interview Wednesday that all the data he sees from Berkshire Hathaway Inc. subsidiaries shows the economy weakening.

Everything connected with construction and with consumer, I see weakness, and if anything, it's accentuating a little bit."

Buffett also said he thinks inflation is picking up, especially in steel and oil, so it should be a concern for the Federal Reserve.

But Buffett said he would have been surprised if the Federal Reserve were to announce a rate cut Wednesday afternoon.

The Fed left rates unchanged.

"I think the Fed has to be careful not to do anything that signals that they regard inflation as a secondary goal and something they'll worry about later," he said.

Buffett also said he believes supply and demand, not market speculation, is what's driving oil prices to new heights.

Oil futures fell Wednesday after the Energy Department said the nation's supplies of fuel and oil were larger than expected last week, but prices remain above $130 a barrel.

Buffett said he disagrees with the idea that speculation was driving oil prices higher. At least nine bills proposing limits on that oil speculation have been introduced in Congress in recent weeks.

"In my adult lifetime, up until the last year or two, there's been a huge amount of excess supply available," Buffett said. "We don't have excess capacity in the world anymore, and that's why you're seeing these oil prices."

Buffett said he doesn't think it makes sense to impose a windfall tax on oil companies that have benefited from the high price of oil when other commodity prices have also increased. Steel, corn and soybean prices are all up significantly.

"I don't think any candidate in his right mind -- with the number of electoral votes in farm states -- would say that you ought to tax farmers specially because they're getting a windfall," Buffett said.

When asked about politics, Buffett said he doesn't think Democrat Barack Obama or Republican John McCain will have trouble raising money in the presidential race.

Buffett was backing both Obama and Hillary Rodham Clinton throughout the primaries, but since Clinton dropped out of the race, he has been supporting Obama.

"I think Barack is going to have plenty of money," he said.

Anyone Notice?

Anyone notice what is happening today? The strong sectors are all negative today and the weak sectors are all positive today. Why is this. Well they hope the FED will say something hawkish and this wil be the short term play in terms of bias, if not we go back to the same old bias. Notice how Oil and Gold are weak here!!!

Mid Day action

As expected the action is slow before the FED announcement @2PM.

Agro stocks being sold here for sure.

POT -7.50
MON -7.5
MOS -3.88
IPI -4.77
AGU -2.68

MON and the agros stock

MON just reported and the stock is dropping like a rock. Right here might be the catalyst for the pullback in the Ag stocks.
Look for the group to trade lower on this.
POT
AG
AGU
MOS
IPI
LNN