the FOMC trade

Discussion in 'Trading' started by scriabinop23, Mar 16, 2007.

  1. I'm assuming that will be next week's market mover.

    Up or down guys? Will this be the next leg down or a much anticipated buying spree?
  2. lol we've had 10 buying sprees the last 3 weeks and they're failing. also what can the fed say? inflation is zooming again and a cast of reality is coming over the market that the bull is dead for a while. if the fed dared too lower now the market would crash. we should see 1330 on the es in the next 2-3 weeks
  3. Neet


    Bear market baby!

    ...but make sure your preference or biased doesn't cloud your mind. Look at market internals, be a ref, it's ok to have a favorite team but when it comes to being a ref neutrality for the kill.
  4. S2007S


    Its already given rates are staying where they are, I would be more concerned about what they are going to say. I also think its nearly impossible for anything positive at this point after a sub prime mortgage collapse and inflation that seems to be rising at a steady pace.
  5. ???...........sell some premium in the bond & note options, not stocks.
  6. what fascinates me is that inflation #s seem to be 100% correlated to commodity price movements, particularly oil and agriculture. Nowadays, if you want a leading indicator to CPI, just look at corn, oil, gasoline, etc. Its been pretty clear FOMC policy has no impact on inflation, at least in today's world.

    It seems to me the latest silent killer in these markets is ag. prices, since 4.xx corn is driving prices through the roof. ethanol policy definitely is backfiring on US policy makers.

    With that factored in, it'll be interesting to see if Bernanke can 'calm' the markets with language. I certainly think market response to this FOMC will be a tell how deep this correction will go.