Another Dip, Another Fed Pep-Talk, Another Rally.

I've been saying for a LONG time that the Fed WILL NOT raise interest rates in 2015. They can't! The following quotes are taken directly from a Bloomberg article today:

Equities rallied yesterday on relief that Federal Reserve minutes signaled no change in interest-rate policy and optimism over employment growth. Most central bank officials agreed their new policy guidance means they are unlikely to raise interest rates before late April and a number expressed concern inflation could remain too low.

“I don’t think we should be in a hurry to increase interest rates,” Evans said during a discussion with Lars Peter Hansen, a Nobel prize-winning economist at the University of Chicago. Later in the presentation, Evans said such a move to tighten too soon would be a “catastrophe.”

The same dip and rally has happened 3 times since October:

Also, notice how ALL the volume is on the way down! It disappears on the way back up! If investors really think that the US can exist in this little bubble, safe from the slowdown in China, Europe, and Japan... I have a bridge to sell you.

But don't worry! The Fed's got our backs! Does anyone ever learn?!

That was in Summer 2007. Did the Fed...

• Lower the discount rate? Yes
• Lower the overnight rate? Yes
• Give a lot of market pep-talks? Yes

Did the market still drop like a rock? YES.

I'm not calling for an all out crash in the markets... yet. All I'm saying is that the Fed, no matter what, cannot stop a market decline. "The trend is your friend until the trend ends."