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Todd Harrison: My Thoughts on the FOMC Announcement and the Market
Plus, I'm thinking about a Twitter and Facebook trade.
Todd Harrison    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The reaction to the Federal Open Market Committee's announcement today is par for the course. Remember that the first move following an FOMC announcement is typically the false move. See the Federal Reserve press release here.

Looking at financial stocks, the key level to watch on the KBW Bank Index (INDEXSP:BKX) is 67. Not only is 67 the BKX's 200-day moving average, it's also a triple bottom.

I haven't made the trade yet, but a long Twitter (NYSE:TWTR) trade and short Facebook (NASDAQ:FB) trade is starting to crystallize in my mind's eye.

New Federal Reserve chairpersons typically have their feet put to the fire shortly after they're sworn in -- Janet Yellen has that to look forward to. The bulls will argue that their ability to hold the S&P 500 (INDEXSP:.INX) near all-time highs despite the 20%, 30%, and 40% haircuts in high-beta stocks is an overt positive. The bulls may be right, but the market story continues to unfold. I, for one, continue to respect the Smart Money Flow Index chart that I highlighted this morning on Minyanville. The Smart Money Flow Index shows whether "smart" (or experienced) investors and traders are buying or selling on a day-to-day basis. A divergence between the Smart Money Index and major indices such as the Dow Jones Industrial Average (INDEXDJX:.DJI) warrants caution.

As always, I hope this finds you well.

R.P.

Twitter: @todd_harrison

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No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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.

Todd Harrison: My Thoughts on the FOMC Announcement and the Market
Plus, I'm thinking about a Twitter and Facebook trade.
Todd Harrison    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The reaction to the Federal Open Market Committee's announcement today is par for the course. Remember that the first move following an FOMC announcement is typically the false move. See the Federal Reserve press release here.

Looking at financial stocks, the key level to watch on the KBW Bank Index (INDEXSP:BKX) is 67. Not only is 67 the BKX's 200-day moving average, it's also a triple bottom.

I haven't made the trade yet, but a long Twitter (NYSE:TWTR) trade and short Facebook (NASDAQ:FB) trade is starting to crystallize in my mind's eye.

New Federal Reserve chairpersons typically have their feet put to the fire shortly after they're sworn in -- Janet Yellen has that to look forward to. The bulls will argue that their ability to hold the S&P 500 (INDEXSP:.INX) near all-time highs despite the 20%, 30%, and 40% haircuts in high-beta stocks is an overt positive. The bulls may be right, but the market story continues to unfold. I, for one, continue to respect the Smart Money Flow Index chart that I highlighted this morning on Minyanville. The Smart Money Flow Index shows whether "smart" (or experienced) investors and traders are buying or selling on a day-to-day basis. A divergence between the Smart Money Index and major indices such as the Dow Jones Industrial Average (INDEXDJX:.DJI) warrants caution.

As always, I hope this finds you well.

R.P.

Twitter: @todd_harrison

< Previous
  • 1
Next >
No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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
Todd Harrison: My Thoughts on the FOMC Announcement and the Market
Plus, I'm thinking about a Twitter and Facebook trade.
Todd Harrison    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The reaction to the Federal Open Market Committee's announcement today is par for the course. Remember that the first move following an FOMC announcement is typically the false move. See the Federal Reserve press release here.

Looking at financial stocks, the key level to watch on the KBW Bank Index (INDEXSP:BKX) is 67. Not only is 67 the BKX's 200-day moving average, it's also a triple bottom.

I haven't made the trade yet, but a long Twitter (NYSE:TWTR) trade and short Facebook (NASDAQ:FB) trade is starting to crystallize in my mind's eye.

New Federal Reserve chairpersons typically have their feet put to the fire shortly after they're sworn in -- Janet Yellen has that to look forward to. The bulls will argue that their ability to hold the S&P 500 (INDEXSP:.INX) near all-time highs despite the 20%, 30%, and 40% haircuts in high-beta stocks is an overt positive. The bulls may be right, but the market story continues to unfold. I, for one, continue to respect the Smart Money Flow Index chart that I highlighted this morning on Minyanville. The Smart Money Flow Index shows whether "smart" (or experienced) investors and traders are buying or selling on a day-to-day basis. A divergence between the Smart Money Index and major indices such as the Dow Jones Industrial Average (INDEXDJX:.DJI) warrants caution.

As always, I hope this finds you well.

R.P.

Twitter: @todd_harrison

< Previous
  • 1
Next >
No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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.

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