Update on CFC and BIDU

BIDU apparently has found spport at the 200 EDMA and is now bouncing off that level and challenging the $100 level. If the stock breaks $100 on strong volume, we can confirm that a new uptrend has started for this stock. But if it fails to break $100 and reverses on strong volume, we can expect to see $93 to $85 in short order.

CFC is currently is also edging slightly higher up $.20 to $35.42 on my Level II quotes. This is on very light volume and there appears to be congestion with the ceiling at $36.50 and floor at $34.79. The market is very cautious ahead of the FOMC results today. It is scheduled to be released at 2:30PM EST. I see some shorts covering their positions ahead of the announcement.

FOMC is most likely going to keep the rates steady but their policy statement will move the markets either up or down. In all likelihood, the FOMC must confront the rising issues with subprime, which they may down play as being anything of significance in order to keep the markets from being spooked. But the duty of FED is to keep the inflation under control and to guarantee that the economy will continue to expand at healthy levels. In order to do this, they must acknowledge the suprime crisis and also be honest about their policy and not pander to the market's whims and realize that they do not exist to prop up the markets but to ensure long term expansion of this economy.