Stocks and Precious Metals Charts - Markets Gangnam Style - They Never See It Coming

As a reminder, the US stock market crashed on Black Monday, October 19, with the Dow Jones Industrial Average falling roughly 22.6%.

The FOMC will be releasing their June rate decision tomorrow afternoon.

The market is broadly, if not unanimously, expecting a 25 bp rate increase tomorrow.

They are further expected three rate increases this year. Although given the *right* kind of economic reports there may be room for a fourth.

The Administration is signaling less concern with the impacts, collateral damage if you will, of their policy decisions and liquidity drains on the emerging markets.This is the famous 'our dollar, your headache' posture that was made famous by James Baker III.

That sort of attitude tends to dissipate quickly when markets start smoking and the interdependent consequences of overly leveraged and gimmicked markets start falling down, and losses come home to roost on the market overlords, the Banks.

Here is the substance of the Fed's recent statements:

1. Inflation expectations are low and little changed
2. Risks to the economy are balanced
3. Rates will be raised, but slowly

Let's see if the Fed varies any of its familiar patterns.

Gold and silver were off a little on a slightly stronger dollar.

After the bell we are waiting for the judge's decision on the AT&T and Time Warner merger. This decision may have a large impact on the M&A climate this summer.Watch for the action in similar 'vertical' plays involving content holders like Disney et al.

As a reminder there will be a stock option expiration for June this Friday. I believe that this one will be a 'triple witch' if not a quad.

The Korean summit flashed in Singapore, with a promise and a hope that we can all just get along.