Time 9:11

Market Comments: Don't Fight The Fed

This saying has been around for years and now I believe it requires full consideration. the Fed is not only cutting rates but again today the Fed announced more ways to save the credit markets and increase liquidity. This action should at the least put afloor in the market and at best fuel a rally. Commodities should continue to be king, even rice appears to be launching into rally the likes opf which has not been seen since 1972 -'74.

Continue to focus on commodities stocks and don't short.

The Wall Street Journal reports the Fedeal Reserve is considering contingency plans for expanding its lending power in the event its recent steps to unfreeze credit markets fail. Among the options: Having the Treasury borrow more money than it needs to fund the government and leave the proceeds on deposit at the Fed; issuing debt under the Fed's name rather than the Treasury's; and asking Congress for immediate authority for the Fed to pay interest on commercial-bank reserves instead of waiting until a previously enacted law permits it in 2011. No moves are imminent because the Fed still has plenty of balance sheet room for additional lending now. The internal discussions are part of a continuing effort at the Fed, similar to what is under way at foreign central banks, to determine its options if the credit crunch becomes even more severe. Fed officials believe the availability of such options largely eliminates the risk of exhausting its stockpile of Treasury bonds and thus losing its ability to backstop the financial system, as some on Wall Street fear. British and Swiss central banks also are contemplating contingency plans. For now, the European Central Bank is reluctant to consider options that require substantial modifications of its standard tools.