At the closing bell, the SP 600 rose .7%, the SP 500 rallied .6%, the Nasdaq gained .3%, and the DJIA closed higher by .25%.

Volume was lower on both the NYSE and the Nasdaq, as traders, like always, were in no mood to place large bets ahead of the FOMC decision.

Breadth was positive on the NYSE by a 12-to-5 margin and was positive on the Nasdaq by a 3-to-2 margin.

It was really a day of random, wild price action that really had no meaning. Taking too much from a day like today is only a mistake. There is really nothing to conclude about today except that the traders that had to trade traded and the big money stayed on the sideline as they awaited the decision from the Fed.

Today’s biggest winners were obviously stocks related to oil. That 5.5% jump was just stunning and unexpected. That allowed a lot of the thrashed oil stocks to rally today. However, the majority of these charts clearly show stocks that have topped and are rolling over. I can not predict the future but the chances that oil comes back here seems low to me but what do I know. These commodity bull cycles can last a long time. I just wouldn’t start buying oil stocks, based on this move. Especially with all the oil groups being in the bottom 20% of all 197 industry groups. One thing is for sure, these stocks are not leaders. There are better charts out there, despite the recent gains in oil.

The good economic news of the day was without a doubt the Conference Board consumer confidence index rising to 110.3. That was the indexes highest level since May 2002. That should be taken as great news right? Wrong. Not according to the biased as HELL liberal media. I am looking at the NYTimes and USA Today headline on it. Here is what both say: “A rise in consumer confidence MAY NOT LAST.” “Consumer confidence edges up in January, BUT FUTURE IS CLOUDY.” What the F***??? How come everything is spun so damn negatively. It is finally starting to really bother me the constant BS that comes out of the woodwork at these WORTHLESS news mediums. HORRIBLE. Just HORRIBLE!

There is one more day of the Fed meeting before they decide the future of interest rates. The decision will come down at the same time it always does and nothing is expected to change. The wording will be what everyone will be paying attention to, to see how the most recent round of data was interpreted by the Fed.

However, we really don’t need to give a crap about this meeting as we have stocks breaking out and following through with significant price gains. As long as that keeps happening and this market keeps trending up, I doubt the Fed is going to do anything in the short-term to impact that. Maybe if something drastic and unexpected happens tomorrow, the market could get a bit crazy. But somehow I think the trend will just remain. As long as stocks keep moving up, there is no reason to predict there demise. Follow the trend as the trend is your friend.

All day long, today, I saw the put/call ratio at .9 or higher. That sure seems to me that there are a lot of players still looking to call a top. The difference with the put/call and sentiment indicators is that the put/call is the actual decision the traders make. Sentiment is sentiment. The put/call ratio is where traders are placing there bets. And they are still bearish. And as history shows with this indicator. The crowd is always wrong. So it doesn’t seem smart to be playing the puts and shorts, with all of these beautiful stocks making these beautiful gains. I post the big winners on my free blog (mauitrader.blogspot) if you want to see the actual gains in stocks up 45% or more.

We shall see what fireworks are let off by the Fed, after the meeting. Aloha and I will see you in the Chat Room.