iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,473 Blog Posts

Playing the Fed

This should be an easy trade.

If the verbiage coming out from Janet Yellen’s big fat brooklyn mouth is hawkish, get long banks. You want to do this only if rates are shooting higher. This will most likely lead to a steepening of the yield curve, a major profit centre for your local banker.

If she sounds dovish, the quick and easy trade is to be long treasuries, utilities and REITs–pretty much anything yield oriented.

I doubt the market will move big in either direction. I just don’t see this meeting as a nail biter. Most people are expecting a slightly hawkish tone to the meeting, so it should be business as usual.

Nonetheless, you should build a quick list of super-regional banks that might move on the announcement.

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16 comments

  1. xxxhuggiebearxxx

    Gramma Yellen is sure to keep this party going. Gramma Yellen is a firm believer in the notion that a little bit of inflation is good for the soul, and even if it gets carried away a little bit, its worth it.

    No way Gramma Yellen sounds hawkish while they are bringing QE to an end.

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  2. bigl

    The promotion of hashcoins will be the topic of discussion

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  3. juice

    where’s the scenario where we grab the Senator Gint porfolio? aka the Ron Paul portfolio

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  4. newbalance

    rates wont move until after mid-terms..

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    • tradercaddy

      I will be discharged from my nursing home and an experiment at the UCF medical school (or ashes dust in the wind) before this happens.
      We have structural problems in this country and pedal to the metal will only keep us afloat (maybe).
      See Japan post- 1990.

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  5. boyaj

    Let’s hope Grandma Yellen took her 27 pills this morning (with 4 of them ironically being biotech drugs) and doesn’t do nor say anything too rash

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    • tradercaddy

      There is the Fed statement, a rally, a reversal, a press conference, then a reversal of the reversal.
      Too confusing.
      Time for a nap.

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  6. xxxhuggiebearxxx

    Boy what high drama….

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  7. tradercaddy

    It just came to me.
    Bill Gross looks like that alien in the American Dad cartoon.

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  8. Jerry

    I can smell the bear capitulation

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  9. tradercaddy

    Yellen reads like my Grandma used to read to me.
    Obviously, a grad of P.S. 39 in Brooklyn.

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  10. dfasd

    regardless, buy NUGT

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  11. Cascadian

    difficult to listen to. How about an ASL interpreter?

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