Waiting for Fed | stockbee

9/12/2007

Waiting for Fed

Market rallied after tow days of negative action. The Fed meeting next week is acting as a backdrop to market action. Market participants are pricing in Fed cut. The expectations of Fed cut are rising to such a feverish level that the actual news will be anticlimax and if market keeps rallying in to Fed day, we will be sold on actual Fed decision.

With holidays again lurking , we will be in thin and volatile trading environment.

6 comments:

walter said...

pradeep,

in terms of market monitor, what exactly might we be looking for as an indication that the market has chosen a direction, etc. i know that i and others are kinda sitting on the sidelines...

thanks

Pradeep Bonde said...

Either of the following:
1 65 days ratio positive
2 Stocks up 25% plus in 65 days < 200

john said...

naturally it was expected to be quiet this week w/the high holidays and pre-fed.

however right now it's a very eerie quiet. this would have been a good week to take a vacation.

walter said...

thanks...

you still following EPs, etc?

marketmakerX said...

There's been many good looking set ups to trade all along. I dont know what you guys talking about. If you guys stuck to the top industry groups you have done well.

F-Trader said...

Pradeep,

I agree that there will be a sell-off but not in stocks, in treasuries which will actually make stocks go up no matter what.

F.