U.S. stocks rallied to a more than two-week high Tuesday ahead of an announcement from the U.S. Federal Reserve on whether it would raise interest rates for the first time in almost a decade. The Dow gained 228.89 points, or 1.4%, to 16599.85, the highest close since Aug. 28. The S&P gained 25.06 points, or 1.3%, to 1978.09. The Nasdaq rose 1.1% to 4860.52.
Who knows what will happen Thursday, but its starting to feel like the fed may sit on its hands. I attribute this more to the weakness in the emerging markets (they couldn’t handle even a quarter point uptick), and pressure from the Lagarde and the IMF.
I can see Yellen accommodating her fellow financial engineers just one more time. So bottom line, if there isn’t a rate increase this week, the market will start worrying about a December increase soon enough. Its a vicious cycle.
Expect a huge move either way on Thursday.
Our shorts in individual names did better than the index shorts as I took stops on SQQQ and SRTY today.
I added new name ITEK today at the 13.40 zone. If you missed it, I still think you can own it at today’s high or less.
See you in the morning.