Online Stock Trading | Frozen; Traders continue to be reluctant to make any significant best ahead of tomorrow’s FOMC policty decision

Frozen; Traders continue to be reluctant to make any significant best ahead of tomorrow’s FOMC policty decision


Filed Under Market Commentary |

Stocks were sent lower on lower trade today, mostly due to the looming FOMC policy decision tomorrow at 215pm EST.  Can anyone blame traders for not placing large bets?  I would not be placing large long and/or short bets here.  The risk/reward situation is not in your favor, making all-in bets that is.  Having a bias to the long side here makes sense.  We have a confirmed market rally all in the face of lower volume rallies.  It pays to grab stocks that are breaking out early in a confirmed market rally. 

What will the FOMC do?  Click on the poll on the right hand side!  I am not expert in monetary policy by any stretch of the imagination.  What I do see is a market that is correcting mis-guided, borderline illegal lending practices.  Cutting rates would almost, to me signal that it is ok to lend money that one shouldn’t be lending.  At any rate, most are expecting a 25bps cut but, are hoping for 100bps…who is right?

Charts to come…

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