Another FOMC meeting – another round of panicky shorts heading for the hills. With the exception of the grains and the hogs, nearly every other commodity futures market is moving higher this morning. The reason? Why of course – everyone is terrified ( the shorts ) of a dovish Fed. What are they expecting – the reincarnation of Paul Volcker?

Not with this Fed.

Meanwhile – this is more of what I mentioned in the currency markets -expect subsequent rounds of short covering followed by rounds of long liquidation as each side panics and runs depending on the words coming out of the lips of each nation’s Central Bankers and/or economic data releases.

It is really a recipe for nothing but chop, slice and dice, when it comes to trading. Until these Central Banks get out of the way ( that is not going to happen for a while) trade VERY SMALL positions unless you have a death wish.

Trendless markets, that chop back and forth, are widow makers.

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