Fed's carrot delivery.

It's pretty clear that the market is awaiting whether the Fed's chairman is going to deliver another basket of carrots at a 50% discount otherwise which he's not meeting the market demands and his shop is going o be mobbed again and spelt with rotten eggs.

Traders are cautiously following the outcome of the schedule meeting of the FOMC, which starts Tuesday and ends with an approximately 2:15 p.m. announcement Wednesday.

Investors will also be watching for news affecting the economic stimulus plan, including comments from President Bush during Monday night's State of the Union Address. A House vote on the plan is scheduled for Tuesday though the time is not yet determined.

Tracking the Dow on Monday,28/1/08.

The market open higher but succumb to the morning's weak new home sales report and mixed earnings news as further evidence that the Federal Reserve will keep cutting interest rates.The turbulent was contained at 10:00am,the usual time for a retracement from its high.The theme play is the great expectations of a rate cut.Any disappointment we're goin to had it hard-rock.Towards the half hour before the closing bell,there was a breakaway renegade of green-berets advancing to hunt for the bulls.Sure they'll get them.

The bulls have finally short-cover their positions.

The are now in a position to head further north.

Make sure they read the correct compass needle.