Two Ways To Play: Labor, Financial Turmoil Freezes FOMC
Strengthen your portfolio in good times and bad.
In a statement released today in Washington, the committee said "Labor markets have softened further. Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth."
Stocks were strong all day and extended gains after the statement on speculation that the Fed was going to leave rates unchanged for the remainder of the year. An economist at Wachovia (WB) said the next move would likely be up, "but it won't occur for a while."
From the Bull Pen: We've noted the positive performance in Johnson & Johnson (JNJ). Bulls can continue to play the upside in that stock using a two point trailing stop.
From the Bear Cave: Bears aren't fooled by today's rally. Especially with reports that 90% of today's move in the financial sector was due to short-covering. Fading (read: buy) the Ultrashort Financials (SKF) into the $100 level can be an option.
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