Seems the fed will lean towards a rate hike, now you can say rate hikes are good it means the economy is strong.
The short interest for November came out today. Many of the stocks I looked up appear to have increased interest. So there are still many betting on a good downturn. It appears the market is going in two different directions, not all of the sectors are rallying. The stocks that are rallying appear just to be up slightly higher. Still lots of reports this week and you know some of them are not going to be rosy. There is also a cold snap this weekend which will result in higher oil prices. $60 was the ceiling last week, now it appears to be the new floor. The market was rallying from July partly because of falling oil prices. So as oil prices rally, what then? The chart tells me that a correction of at least 6-7% is in order. The correction could happen in December, but I doubt it. Lots of traders are going to be bidding up the stocks for the rest of the year for bonus reasons. If it doesnt happen in December, then definately January.
it is really amazing that fed funds are up on this speach - first hawkish speach we had from Ben since June. The market is just becoming insane. For instance implied prob of 25bp cut by March meeting is on average up by 10% only today...now 50% chance of cut by that time - and still being lifted!
The fed are very careful. Rates simply WON'T go up. They wont go down either. if the fed was more obvious about a rate hike would the markets have rallied like they did this afternoon? Nooooo Thats cause there won't be one.
I looked through different stocks that I have on all the different pages I have setup on IB. Some stocks rallied, while others did not. It seemed that everyone got back into their favorite trading stock. The other disliked stocks were cast aside. For example, Mastercard and DIVX seemed to ramp up nicely, while Hansens was cast aside. VSE rallied while PEIX went negative. AMD came back while INTC was dumped. JBlue went up while AMR and LUV in the red. etc. I think the perceived rally was from traders bidding up the prices. That doesnt make me feel very warm and juicy. There is going to be nice economic report for everyday this week and then the cold snap over the weekend which should give oil some rise. I say sell into any rally.
Mastercard always goes up. A large cap that trades like a penny stock in terms of gains but without all the penny stock risk.