Macro Outlook
Just so we are clear going into this week's two-day FOMC meeting: No, I have not changed my mind as to the threat inflation represents to our economy. But yes, I have changed my mind as to what I think the Fed will do about it.

I now believe that they are far more worried about the immediate threat to their reputations that a “Bernanke Recession” would represent. A recession is a relatively short-term event. It makes headlines.

Inflation is a long, slow grind that reduces the value of your cash, and really, your investments. But it is a process, not an event, and as such, the Fed feels that it can come back to it whenever they get the chance.

Meanwhile, they will do nothing again this month.

More tonight…

Market Trends
The techs are entering resistance mode. For the fourth time over the last five years, the Nasdaq-100 (QQQQ), a proxy for the tech industry, is coming upon price resistance at $43.00. And for the fourth time over the last five years, it will most likely fail.

The QQQQ is the top ETF as far as trading volume. But there's no denying the distinct Double Top formation at $43.00 from earlier this year, and the recent rally may be a last-ditch attempt to sustain price.

Out of the top ten holdings of the QQQQ, there's been some great earnings news.

But you have to wonder… even with all this good tech news… why was the QQQQ down on Friday? And why does it look to be stalling at such a historical resistance line?

Material Profits
For the past couple weeks, I've been working on a new service. I'll tell you more about it tonight, but keep your eye out for a special report due at the end of the week.

In other news, I'd like to encourage you to visit FoxNews.com, and check out the video on scandal-free stocks from Saturday's Cavuto on Business.

In case you missed my appearance, the video will tell you my favorite scandal-free stock.

Trading Tactics
As we begin the final full week of October trading, the big news will come on Wednesday when the Fed gives their latest decision on interest rates. It's almost a foregone conclusion that the Fed will keep rates steady for the third time in a row - maintaining a 5.25% rate while delivering their typical “Wait and See” policy statement.

What is interesting is that the Fed is meeting for two days this week - with that extra day earmarked for working on a “communication strategy.” I wonder how that will change the statement that'll be released around 2:15 p.m. EST on Wednesday.

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