As is typical of days when The Fed makes an announcement, traders are reticent to make any big moves before 2 p.m., EST. The S&P 500 is down slightly as of this writing, and it can be argued that many stocks are taking a healthy respite after yesterday’s rally. It will be interesting to see if there is any kind of sustainable move after the announcement today, in either direction. We all know the economy is still weak, and any type of recovery is fragile. Thus, it is hard to see any kind of surprise rate hike.
We have also become accustomed to nasty whipsaws in the minutes immediately after the press release, but at this point it is hard to envision The Fed announcing something that would greatly surprise the market. I expect daytraders to try and catch the moves after 2 p.m., but beyond that, the healthiest thing for this market would be to close the day right about where it is churning now.
Truth be told, I am just as much in a holding pattern as everyone else is. In an hour or so, we should have a better grip on just how strong the underlying bid to this market truly is. Sit tight and buckle up.
Comments »