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!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter