NEW YORK (TheStreet) -- There has been a lot of confusion in the market lately from mixed economic data and earnings results. Lending a hand as to what the Federal Reserve might do is Ben Willis of Albert Fried, alongside Debra Borchardt of TheStreet.
Housing prices continue to improve, but consumer confidence has dropped a bit. Some earnings results have been great, while others have been terrible, with plenty in between. With second-quarter GDP results and the FOMC meeting scheduled for Wednesday, will stocks get rocked or shoot higher?
While he can't foretell the future, Willis does offer an interesting take on what Federal Reserve Chairman Ben Bernanke might do.
Many traders expect the Fed to begin tapering around September, but the Treasury may have just given Bernanke another reason: It doesn't need it.
With tax receipts coming in stronger than expected and a large payment from Fannie Mae and Freddie Mac, the Treasury says that the $85 billion-a-month in Fed stimulus isn't needed.
So when time does come for Bernanke to announce the tapering of quantitative easing, he could simply blame the Treasury as his reason for reducing the monthly purchases. How the market would react is unknown, but could be seen as early as Wednesday afternoon.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.