The market was mostly marking time ahead of the conclusion of the Fed meeting which saw no action and gave no  glimpse into exactly when markets will have to grapple with the first rate hike since 2006 when the target rate was lifted 25 basis points to 5.25.  This time would be a lot different since we’re coming from zero, after extraordinary measures, including quantitative easing.  I don’t think the economy is healed enough to move without its training wheels.  For now, there is no change in the fed funds rate.  This decision on interest rates was unanimous.  The economy is expanding at a moderate pace and inflation is still running below the fed target of 2%.   The statement is basically the same as the last.

If that’s the true goal of the Federal Reserve, I really think the goal is to protect massive fortunes amassed over the past few centuries.

The bottom line is the market want’s a signal there will be no hikes this year.  I say there won’t be, although, I would love to see them get started now.

There’s a defensive nature to the move today as well, but the action in medical and pharmaceuticals points to the fact amazing things are happening that will allow the average American live to 100 plus.  I also think the move in defense industry stocks points to my theory of an arms race bigger than the one emerging in the Middle East.  China (which we’ve learned hacked UAL recently) is throwing its weight around and there’s no way to stop it with a pacifist Japan.

I’m also watching oil closely.  I think it’s oversold with that Iran hype and will finish the year north of $60.   Global demand will rebound and producers are going to cut too much- that script happens over and over.