All eyes will be on the Federal Reserve open market statement, at the end of the two day FOMC meeting (2:00 ET). All eyes will then shift to the Bernanke press conference (2:30 ET). It's all about when the Fed will start to "taper" it's bond purchases.To get today's full ALERT subscribe here.
Of course, as we have pointed out here at the ALERT, the focus on Fed tapering is something of a misdirection, Since roughly the start of the year, three month annualized money supply (M2NSA) growth has slowed dramatically from 11.4% to 3.6%. This will be the driving factor in coming weeks and months, not Fed statements. This will put downward pressure on the stock market and upward pressure on interest rates. Traders should continue to trade the bond market and stock market from the short side, i.e., any upticks in these market should be shorted aggressively.
Wednesday, June 19, 2013
Watching the Fed
From today's EPJ Daily Alert
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