The Morning Look
Market Update:
Stock futures were higher before Tuesday’s open as the Fed begins its two-day meeting.
Gary’s Thoughts: We are writing this with Dow up 100 . Also, the comatose big cap tech/internet waking up here. Most trade under 50 day but feel like downside may be over.
Economic Calendar:
- FOMC Meeting Begins
- NFIB Small Business Optimism Index 6:00 AM ET
- Import and Export Prices 8:30 AM ET
- Redbook 8:55 AM ET
- 4-Week Bill Auction 11:30 AM ET
- 30-Yr Bond Auction 1:00 PM ET
Highlights:
- OPEC-Russia Deal Could Drain Almost Half the Global Oil Surplus
Gary’s Thoughts: Nah! - Gold suffering second-worst quarter in 18 years
Gary’s Thoughts: Comatose right now.
I’d not call for a new rally, so..oooo soon; …my little Jewish friend.
This market is,,, over bought, trend up, with divergence.
And, the divergence is in the banks !
Could it be that the xlf(s) are at last waking up to the fact, that higher interest rates slow economic growth,, that higher interest rates …do not … lead a banking sector higher ?
As this market rallies , ………….trepidation builds. .. Worry is in this market.
Q: Is Yoda ready to short ?
A: Nope.
Yoda is looks to the mystic power of the force, and reveled to him, is a market that is likely to rally a tad more; to even more extended, then go sideways. But it is highly unlikely that the fed will allow the market to pull back…..much.
Yoda looks to IEF, for a bond market rally, or a bond market pull back. The answer to which, depends upon tomorrow’s announcement from the fed.