Archive for September, 2009
FOMC Is Not Likely To Hint Of Exit Strategy - Look For A Small Rally.
The market is in “wait and see mode” ahead of the FOMC’s announcement. This is a relatively light news week and traders are looking for any information that might drive the market. Last week, Chairman Bernanke said that the recession has unofficially ended. He tempered any excitement by saying that growth would be anemic. The economy is just starting to recover and I doubt the Fed will hint of an exit strategy for quantitative easing. They had to pull out all of stops to avoid a full blown financial collapse and they won’t impede this recovery until they are convinced that …
WFE Board urges consistent regulation and more transparency from G20 market reform efforts
WFE Board urges consistent regulation and more transparency from G20 market reform efforts
CBOE STOCK EXCHANGE (CBSX) DROPS TAKER FEE SIGNIFICANTLY
CBOE STOCK EXCHANGE (CBSX) DROPS TAKER FEE SIGNIFICANTLY
The Fed Is Not Likely To Change Its Rhetoric - That Should Support The Market.
After a very busy week that included a big market rally, traders are taking a breather. This is a fairly light news week and volumes are light. All eyes are on the FOMC meeting tomorrow and traders will look for any hint of tightening. The Fed will stop buying treasuries at the end of the month and this might put upward pressure on short term yields. I believe the Fed wants to see how this change will play out before they start disclosing an exit strategy. Economic conditions are gradually improving, but the recovery is very fragile. I believe they stay …
Dead Till The Fed. Look For Opportunities To Sell Put Spreads - Be Patient!
Last week, the market staged a big rally based on “less bad” economic numbers. Once the momentum was established, quadruple witching buy programs fueled the rally. This morning, leading economic indicators came in slightly below consensus estimates, but the number improved to a new 18-month high. Supplier deliveries, the interest rate spread, stock market prices, building permits and consumer sentiment were positive influences. Real money supply, average weekly initial claims and nondefense capital goods orders were a drag on the index. Wednesday, the FOMC will disclose its interest-rate policy. They are likely to maintain their current 0% to .25% target rate …