Wednesday Market Wrap-Fed Nonsense-New Stock

Triggered Stocks


New Picks

AMBAThis was one that got away on a  stop a month ago.  Buy 42.70 Stop 38.



Upside’s Commentary

The stock market trimmed losses today, after the Federal Reserve said it would end its bond-buying program while keeping interest rates low. The Dow was down 31, or 0.2%, to 16,974. The Nasdaq was down 15, or 0.3%, to 4,549, while the S&P 500 lost 3, or 0.1%, to 1,982. Declining issues outnumbered advancers by a more than 5-to-4 ratio on the NYSE, where volume was again above average.

The market thinks that the Fed’s decision to end its bond-buying program was widely expected.  Big deal. Markets reflect many factors and quantitative easing has been the most important over the past few years, but now investors can focus on earnings.

The hawkish tone from the Fed today was interesting in that it came against the backdrop of the massive bounce we have witnessed in equities from their mid-October lows. Imagine if we had heard today’s Fed announcement with the S&P 500 about 10% lower, struggling to gain composure below both its 50- and 200-day moving averages. It would not likely have been just a “marginally lower” day, but then again, if the market had been collapsing, the Fed would possibly have announced ongoing bond buying or maybe even a fresh, new QE5! It is hard to say, but with stocks holding on to their recent gains, not many bulls are complaining. Don’t fight the Fed ever. Rates will be low for the foreseeable future.

See you in the morning.



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