Front Running the F_E_D

With today's horrendous GDP print, the dynamics have changed completely. Yesterday I talked about the mainstream media talking like the economy had turned some big corner, but if you pay attention to the various manufacturing reports, the 4 regional F_E_D reports, and the details, there were problems that were plain to see, the economic surprise index is something we talked about recently.

Coming in to today the thought has been the F_E_D wasn't going to do much for political reasons, for their own doubts, but with Q4 GDP coming in at a major miss (1 more and we have a recession), there may be some pressure to do something, although I really don't think the F_E_D has done much for the economy (ex stock market) vs what they have done, so largely symbolic.

The problem with GDP going forward is government spending is not going to be the driver it was and with all of this new tax business and cuts, a lot of small businesses and others aren't expected to add much to growth so today's GDP release really makes the F_O_M_C a barn burner vs consensus of just a day ago and the F_O_M_C certainly was aware of GDP long before today.

More to come on actual technicals...