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Two Ways: Fed's Quantitative Easing in Focus


Strengthen your portfolio in good times and bad.


All eyes are on the FOMC meeting today. Most market participants aren't expecting any moves in the overnight Fed funds target rate, but will be focused on what signals the Fed may give on its quantitative easing program which is set to expire in September.

According to Bloomberg, former Fed governor Laurence Meyer (1996-2002) predicts the central bank will announce an end to the program. Meanwhile other economists like Lee Hoskins (Cleveland Fed president 1987-1991) think the Fed is likely to leave the QE option open, taking a hint from the Bank of England last week when it expanded its quantitative easing program by 40%. The FOMC statement is due out at 2:15 PM EST.

From the Bull Pen: Lots of talk about the rally in the dollar. But it may be premature to call it a trend. If the rally really is short-covering into the FOMC, one can expect the silver ETF (SLV) to resume its uptrend. A sell stop can be set near $13.80-13.60.

From the Bear Cave: Bears can keep an eye on Sears Holding (SHLD) as the stock may be rolling over. A rally above $78 would negate a downtrend. A buy stop can be set above that level or 2% above entry on downside tries.

Quick Check Around the World

Asian trading closed with the Hang Seng -3.03%, India -0.36%, Shanghai -4.66%, Nikkei -1.42%, and Taiwan -0.15%.

Across the pond, we see the FTSE 0.56%, CAC 0.55%, DAX 0.74%

As of 7:45 AM EST, S&P Futures are trading -0.75 to 992.00 and Nasdaq futures are +0.75 to 1597.25.

A Look at Commodities

Over in commodities, crude oil is trading +0.13 to 69.58 while gold is -0.400 at 947.20 this morning. Silver is -0.450 to 14.30 and copper +1.050 to 274.70.

The dollar index is -0.0350 to 79.2500.

On the Radar


08:30 Trade Balance $-28.5B (cons.)
10:30 Crude Inventories
02:00 Treasury Budget $-129.5 b (cons.)
02:15 FOMC Rate Decision

Click here for the full trading radar.

If the last two days were a snoozer, it should definitely pick up later this afternoon. Tune in to our Buzz and Banter for real time analysis of the statement. Good luck and have a great day!
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