Waiting for Fed

September 12, 2007

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 :

  1. walterSep 12, 2007, 9:50:00 AM

    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

    ReplyDelete
  2. Pradeep BondeSep 12, 2007, 9:59:00 AM

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

    ReplyDelete
  3. internetSep 12, 2007, 10:17:00 AM

    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.

    ReplyDelete
  4. walterSep 12, 2007, 10:34:00 AM

    thanks...

    you still following EPs, etc?

    ReplyDelete
  5. marketmakerXSep 12, 2007, 10:54:00 AM

    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.

    ReplyDelete
  6. F-TraderSep 12, 2007, 11:25:00 AM

    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.

    ReplyDelete

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