Happy Fed-Day everybody. As you already know, Ben Bernanke spoke today, and investors listened. They also didn't seem to like what they heard. I've got a quick reality check on the matter for you. Before we get to it though, something else happened today I need to spout off on, as it's already starting to impact weight-loss drug manufacturers like Arena Pharmaceuticals (ARNA) and VIVUS (VVUS). It Doesn't Really Matter I'm sure you've heard by now that the American Medical Association has officially deemed obesity a disease. Prior to today, the AMA had no particular classification for being overweight. With today's announcement, however, the association feels/hopes the specific designation will lead doctors and other healthcare providers - as well as insurers - to start treating the obesity epidemic as it would a more clear-cut ailment, like cancer or influenza. Ergo, that's great news for companies like Arena Pharmaceuticals or VIVUS, both of which now make and sell prescription drugs to treat obesity. That's why shares of both got a little traction on the news. Here's the problem - the American Medical Association doesn't have any particular legal clout, and the designation of obesity as an official disease doesn't actually compel insurance companies to step up to the plate when it comes to diet pills. The AMA is simply a self-selected organization (granted, a very high-profile one) intended to "promote the art and science of medicine and the betterment of public health." It's not really a legal or governing body though. About the best it can do in the way of making policy is through advocacy and lobbying. To be fair, when the American Medical Association speaks, people listen. They just don't necessarily take action. Only the FDA and the federal government - up to and including the court system - are governing bodies when it comes to healthcare and pharmaceuticals. So VIVUS and Arena are to be avoided? I didn't say that either. In fact, I think both companies have a decent, even if fuzzy, future as weight-loss drugs become more mainstream. It's got nothing to do with the AMA's official designation though. VVUS and ARNA are worth a shot mainly because insurers will likely realize that they're better off by helping customers keep weight off than they are by dealing with problems caused by obesity. That's going to be a slow transformation, however, so if you're in Arena or VIVUS, you may want to plan on being in them for a while. Anyway, speaking of VIVUS and Arena, I'm sure most of you have an opinion on either, or both. Let's go ahead and make those two stocks today's stock-rating candidates. Click here to give a thumbs up or thumbs down on VVUS, and here to vote yay or nay for ARNA. And, I KNOW a bunch of you have something to say about one or both of these stocks. Why not go ahead and put it in writing, as a blog entry, or even a full-blown article? You can do it all from each ticker's home page at the site. And remember, if you prove yourself a really good picker, it may even earn you some money. What a Nutty Market Never let it be said the market isn't interesting. Also never let it be said the market is predictable. Let me make sure I have this right. In late May - for the first time in a couple of years - Fed Chairman Ben Bernanke mildly alluded to the possibility that the Federal Reserve might start to dial down its stimulus efforts. The net result was a two-week drubbing for stocks. How dare he take the market's most important crutch away, whether it was needed or not! Then today he said the Fed would continue spending $85 billion per month on bond buybacks until we saw significant improvements on the employment landscape (which could be a while). He even added that things were looking a little better for the economy than they were a few months ago. Then the market rolls over into the red for the day? In other words, Bernanke gave traders everything they said they wanted two weeks ago, and stocks tank all the same. Sounds about right. I'll let you in on a little secret.... traders were going to do all of this anyway - all they needed was an excuse. Bernanke gave it to them. The good news is, since the selloff is emotionally and technically based rather than fundamentally or economically based, it shouldn't last long. Now we're back to making technical reads on the market, looking for the spot where the bulls or the bears have just had enough. The bad news is, the technicals are leaning back towards the bearish side of the table right now. The S&P 500 closed back under the 20-day moving average line on Wednesday, and that selloff unfurled on high volume. Although the support at the 50-day moving average line (1618.2) still hasn't been broken, remember, stocks are still overbought from the rally that carried them 20% higher between last November and late-May. We still need to burn off that frothiness somehow. This long-term chart puts things into perspective in that timeframe. The only thing I'll add is how it almost seems the sellers had an agenda today, and were just waiting to ambush the bulls at the most opportune time. If that's really the mindset right now, June and July could be a bit agonizing for buy-and-hold investors. With all of that being said, we really need to wait for today's dust to settle before committing to being on either side of the table. I think John Monroe over at the SmallCap Network Elite Opportunity said it best in today's SCN EO newsletter (published prior to the official Fed report): "Let's see what the markets tell us today and tomorrow because we're at another key pivot point, which makes perfect sense based on the Fed rolling into town today. Again, that's just how efficient the markets are, so aside from all of the rhetoric likely to come from the media post Fed today, we prefer to keep a close eye on the charts. That's usually the best indication of what big money on Wall Street is actually doing rather than what the Media is telling." Spot on - half of the trading game is just knowing when to play, and when not to. This isn't a time to play. Speaking of.... Listen, the SmallCap Network Elite Opportunity has just nailed it lately, calling all the market tops and bottoms like they were performing laser surgery. If the seemingly-indecisive nature of the market right now has been making you crazy, these guys can show you how to interpret it, and even how to trade what's coming next. But, for their genius to do you any good, you've got to be a member. I'm telling you, being part of the SCN EO circle is just plain-old good for your portfolio. If you don't believe it, use the free two-week trial to see for yourself. Click here to learn how. Or, copy and paste the following link in your browser: http://www.smallcapnetwork.com/?vmpd_ckstr[click_track]=SCN+Newsletter&vmpd_ckstr_redirect=/pages/SCNEO/v1/