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Wednesday was, yet again, an uncertain and unpredictable day in the markets. After futures pointed to a higher start, stocks opened in the red, climbed into positive territory, then settled back lower. As the Federal Reserve released its latest statement and assessment of the economy, stocks immediately tumbled -- apparently the extension of Operation Twist was less extensive than what many had expected. But just when it looked as if the sky was falling, equities did an about-face and surged higher, at one stage adding about 40 points from their opening level. Then it was back into the red in the late afternoon, leaving the S&P 500 and the Dow with slight losses on the day.

In other words, nobody knows exactly what's going on. The huge trading range Wednesday and sudden shifts in sentiment indicate to me that investors are searching desperately for direction, and that there is an abundance of conflicting reports over exactly where the economy is headed. We want to be optimistic, but the repeated disappointments of the past several years have taught us that no positive outlook goes unpunished. Uncertainty abounds, with many expecting a rally higher in coming weeks, while others are predicting a steep selloff as soon as the next eurozone crisis (Spain?) pops up....427 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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