Second, it gives the Federal Open Market Committee and Ben Bernanke just what they need to do, and like Mighty Mouse (are you old enough to remember the cartoon series?) they'll yell, "Here I come to save the day!"
But when will the Fed's rescue operation begin? Every analyst I've spoken to or read about seems to think it won't happen until September for political reasons.
By the way, I love another quote from the CNBC article that gives us a metaphor of what the worldwide financial malaise could be likened.
"Credit Suisse economist Jonathan Basile had another description: 'It's like trying to sprint through molasses. It's great for conditioning but it's hard as hell,' he said. Like an athlete, 'sometimes when the economy runs too slow, it feels like it hurts.'"
Basile apparently "...expects the Fed to jump in and help out the economy, announcing another round of quantitative easing at its Sept. 13 meeting."
"They tend to do their job, and their job in their eyes is to do what they need to do for the broader economy," he said. "The Bernanke Fed is not one to sit on its hands."
My best educated guess is that Bernanke will wait until the September FOMC meeting, unless he replays the big QE2 announcement he made in 2010.
That's when he surprised everyone (during a mid-term congressional election year) and made the big announcement at the
Fed's annual retreat
in Jackson Hole, Wyoming, in late August.
Will history repeat itself? Are Bernanke and the Federal Reserve's plans that consistent and predictable? My instincts tell me they aren't, but my experience says it's a distinct possibility.
Either way, sooner or later an announcement will be made. The more unexpectedly positive and surprising it is, the more ebullient the upside market reaction will be.
Playing the Rally
So if you want to participate in that jubilant rally, prepare by looking at companies such as
Freeport McMoRan Copper and Gold
(FCX - Get Report)
(GG - Get Report)