This is not a good reason to rally.
FOMC: “with inflation remaining well above the Committee’s objective, participants remarked that moving to a restrictive stance of policy was required to meet the Committee’s legislative mandate to promote maximum employment and price stability”
But we rally nonetheless, at least for now — because markets want higher. How long this rally will continue remains to be seen. I took some longs in various commodity stocks with only a 5% hedge long UVIX.
I do feeeel the commodity trade could be a trap here and oil might gap down again. Ergo, I won’t go too heavily long and will balance it out with other areas of the market. By the end of the session, my hedges will be 15-25%.If you enjoy the content at iBankCoin, please follow us on Twitter