A Great Explanation Of the Current Market

From the WSJ:

Whenever the Fed eventually ceases its series of rate cuts that began last year, it will effectively stabilize the supply of dollars sloshing through the world economy. In particular, analysts say much of so-called "cheap money" available in recent months has flowed into speculation in various assets, including commodities, which many investors have used as an alternative to the volatile stock market.

Peter Cardillo, chief market economist at Avalon Partners, said many of those commodity bets seemed to be unwound Tuesday as speculators bet that the Fed is about to turn off its spigot of cash.

"I wouldn't call this a panic selloff, but it's very clear people are taking some money off the table," said Mr. Cardillo. "They're betting that the Fed is going to surprise us," possibly by not cutting rates at all Wednesday.