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Two Ways to Play: FOMC to Release Interest Rate Policy

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Strengthen your portfolio in good times and bad.

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FOMC Day

The Federal Open Market Committee's interest rate policy decision is due out at 2:15 p.m. EST later today.

Officials are likely to signal the economy has been improving but pledge to keep interest rates near zero for quite some time.

Inflation expectations are rising, according to Bloomberg. The TIP spread (difference between 10-year notes and TIPS) widened to 2.06 percentage points from 1.80 points on Sept. 23. But with unemployment still at high levels, many feel policy makers will have no choice but to maintain the Fed Funds rate at "exceptionally low levels."

From the Bull Pen: Was the move in gold yesterday a message from the markets? Crude oil is following along today. Bulls wanting this type of exposure can consider the oil ETF (USO). Notice how the stock found support at its 20-day moving average (currently 39.52). A sell stop can be set below that level.

From the Bear Cave
: Bears can keep an eye on Motorola (MOT). Watch for confirmation of a double top sell signal. Those playing the downside can consider a buy stop above 9.40.

A Quick Check Around the World


Asian trading closed with the Nikkei 0.42%, India 3.29%, Hang Seng 1.76%, Shanghai 0.46%, and Taiwan 1.97%.

Across the pond, we see the FTSE 0.84%, CAC 1.63%, DAX 1.44%

As of 8:15 a.m. EST, S&P Futures are trading +6.75 to 1048.75 and Nasdaq futures are +4.750 to 1680.00.

A Look at Commodities

Over in commodities, crude oil is +0.72 to 80.32 while gold is +6.20 to 1091.10 this morning. Silver is +0.27 to 17.450 and copper +0.400 to 299.60.

The dollar Index is -0.2600 to 76.3100.

On the Radar

Economics

07:30 Challenger Job Cuts
08:15 ADP Employment Report -190k cons.
10:00 ISM Services 51.7 cons.
10:30 Crude Inventories
02:15 FOMC Rate Decision

Click here for the full trading radar.

Happy Hump Day! Good luck!


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No positions in stocks mentioned.

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