Typically September and October signal the busiest times on the financial markets before the Holidays set in in November. The sub prime mess amongst other issues are no where near resolved - so it is expected that the volatility will continue to rock the markets.
Interest Rate Watch
The biggest question mark brings back memories of the Greenspan era of wondering what the Fed will do with Interest rates. Bernanke up until now has been considered to be quite transparent, which was easy to do when you just leave the controls on autopilot. He was almost found to be asleep at the wheel only concerned about inflation.
Quick action by the Treasury department coordinated with the central banks around the globe injecting liquidity to avoid a major meltdown gave the public the impression that Bernanke had all under control - when in fact he narrowly missed being called on the carpet.
All indications are that a .25% cut is priced in - and the possibility of a .50 point cut is possible. Be sure to register for my live Webcast of the FOMC meeting September 18 and watch the action on the charts live!
Australia GDP comes in Stronger than Expected
Triangle Pattern setting up on the 4 Hour Chart - Sept 3 - 22:00 EST
Click on chart to enlarge
Jerry Furst is an active trader, educator and Founder of Investors Education Network (IEN), he is also a mentor and trading coach to select clients.
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