Crying Wolf

Greenspan was asked how the market psychology at this time is different than the year of 1999 when the dotcome bubble bursted, he said "human behavior of fear is very predictable".

Well, did Al tell you if the Fed will cut the rate or not?

This is a very interesting time that Fed literally controls the stock market, not only the direction of movement, but also how much it will move.

My proprietary daily Smart Money index indicates that the Fed will cut and the market will soar.

Since Cramer's dramatic performance of crying wolf, the Fed has no choice but to lower the rate, everybody is expecting for a cut, So Wall Street is controlling Bernanke.

Not only that, the smart money has already figured out the consequence of the cut. Can you see why the dollar is at historical low and oil is at historical high.

** Here is a quote directly from the Chicago Board of Trade
website:

September 17: 50% for -25 bps versus 50% for -50 bps.


There is a 50/50 chance between a 25-basis point cut and
a 50-basis point cut. From this data it would seem to me
that anything less than a 50-basis point cut will disappoint
the market. On the other hand, if the Fed indeed decides
to cut the funds target rate by 50-basis point, it will be a
positive surprise for the markets.

One might argue that the Fed can literally control the direction
of the markets tomorrow - depending on which string they decide
to pull on. But will they cut 50-basis points when gold, oil and
other commodities are at record-highs AND the US Dollar is at
record-lows?

It pays to follow SMART MONEY,

Mkt Swimmer