Two Ways To Play: Bullard Hints at More Fed Accommodation
Strengthen your portfolio in good times and bad.
Stock futures are up after St. Louis Fed President James Bullard said the central bank should extend its purchases of mortgage-backed securities past its March deadline.
In a story by The Wall Street Journal, Bullard said his reasoning is that the program should continue, albeit at a slower pace, in order for the Fed to remain flexible.
A voting member of the Federal Open Market Committee next year, Bullard admitted that the central bank hasn't decided on the program's fate. He also suggested that the Fed could likely keep interest rates unchanged until 2012.
For more on the economy, see Minyan Richard Suttmeier's Geithner Faces Heat, But the Recession Continues.
From the Bull Pen: The market may be tough to predict, but the government … not so much. It's no wonder that hard assets are screaming higher this morning. Keep an eye on Hess (HES); those playing the upside can set a sell stop below $57.
From the Bear Cave: Bears can watch the homebuilders using the ETF (XHB). They've been trailing behind and with good reason. A rising tide will lift all boats but a failed rally that sticks below $15.20 could suggest more downside to come.
A Quick Check around the World
Asian trading closed with the Nikkei (Closed), India 0.93%, Hang Seng 1.41%, Shanghai 0.92%, and Taiwan 0.05%.
Across the pond, we see the FTSE 1.41%, CAC 1.79%, DAX 1.66%
As of 8:10 AM EST, S&P Futures are trading +10.0 to 1100.25. Nasdaq futures are +15.50 to 1779.50.
A Look at Commodities
Over in commodities, crude oil is +0.95 to 78.42 while gold is +18.60 to 1877.50 this morning. Silver is +0.33 to 1877.5 and copper +4.900 to 315.70.
The dollar Index is -0.5750 to 75.1550.
On the Radar
10:00 Existing Home Sales 5.65m cons.
Click here for the full trading radar.
Welcome back. Have a great day.
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