The market for today
Amidst the Fed meeting yesterday that hinted on future interest rate cuts, stocks roared again to all time levels at the end of trading. The Fed actions gave stocks confidence that they got a solid backing from the Fed so they kept on climbing. For today look for more earning reports have some bearing on the market as the Fed also believes the cuts are for hard times to come. Get in while things are hot and pay attention when things begin to go the other way, which might be soon. The European markets closed on a high so look for put positive effects in the morning. Day traders’ delight yesterday and possibly today so if you are stay sharp and get value, this is the time to shine.
Bonds were mixed yesterday and confused about the Fed’s decision on rate cuts, showing that the economy is weak. Looks like demand will be low because of the action in stocks in the next couple of days, a good time to search for value.
The Dollar dropped again against the Euro after the Fed meeting, seems like no end in sight and no recovery yet. The dollar just can’t find stable ground right now. Keep this as your focus for the late session coming up.
Stocks are the play today and the indicators are the earning reports coming in and tech. Look for profit taking and keep an eye on bonds if and when the economy catches up with stocks but it might not be today.