Finally, we are hours away from the latest Federal Reserve meeting. We have been saying all along the odds of a rate hike are slim to none for this September meeting. All eyes will be on the policy statement and any hint at a rate hike coming this year. At this point, it will likely be December if at all. For the action today we saw sellers once again able to knock the market off its highs of the day. While we were able to close in positive territory we just weren’t able to hang onto the highs. Tomorrow may change all of this. Given the action we are seeing out of leading stocks there is no reason to think we will not see this market push higher. Sure, the Fed could raise rates tomorrow and we see sellers just obliterate the market. Anything is possible, but the likely outcome is the Fed does not hike rates and traders rejoice. The trend is still pointing up and our holdings continue to look and act well. No reason to fight it.
If you are worried about your portfolio heading into tomorrow’s action there is a good chance you do not have a solid risk management process. Your position sizes are likely too big and your exits are too wide. Position sizes and exits go hand-in-hand. Make sure these are in check prior to any position is taken. You will save yourself quite a bit of money over the long haul.
Tomorrow will be a fun day for those who will be sitting back watching the action. We should see some intraday opportunities.
Enjoy the action.
