Cramer: Fed-Induced Rally Isn’t Coming
Lots of people in the market expect stocks to rally, based on commentary coming from the Fed on Wednesday. Jim Cramer isn't among them.
Looking at the gains in the market on Tuesday, the Mad Money host believed at least part of the advance was due to a belief on Wall Street that the Fed will say good things.
"I don't like that component because the buyers don't agree on what good is," Cramer said.
"Some want to hear that Bernanke believes there will be a compromise. I don't think he will give those buyers hope."
"Some want to hear that the Fed won't keep spending on bonds, because the levels have gotten in insane. They might get that, which is good for them, but bad for those who have been buying stocks because they are confident the Fed will keep rates low and uncompetitive to stocks."
At the end of the day, Cramer expects Fed commentary to disappoint.
However hope spring eternal so in the morning Cramer expects the market to advance, then after the statement is released in the afternoon, he's looking for a sell-off.
And the sell-off could accelerate into the close.
Cramer added that after the Fed statement is released he expects the market will immediately turn attention back to Washington and the fiscal cliff watch – and hope that lawmakers can reach some kind of compromise.
However, after his trip to our nation's capital, Cramer doesn't think compromise is coming. "I didn't like what I heard."
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