Federal Reserve leaves Rates and POMO unchanged as volume jumps across the board
The Federal Reserve Bank leaves rates unchanged as stocks close just off the highs of the session with volume up across the board. Traders pushed stocks higher after New Home Sales figures were released showing a near 18% jump month over month sales. After setting the highs of the day stocks settle back just above the mid-point of the session awaiting the Federal Reserve statement on policy. Ben Bernanke and company did not change much of the language from the prior meeting. Stocks reacted a bit, but not as violently as recent “Federal Reserve” policy days. Stocks closed off the session highs, but overall good price action.
Tomorrow we’ll get data from the AAII sentiment survey showing where the bulls and bears stand in this market. So far the high level of bullishness has yet to deter this market from correcting more than just a few percentage points. Distribution has yet to really pile up high, but the NASDAQ does sport 3 days worth. Given the recent action in the market we’ll need to see prices eclipse last week’s high to avoid churn in this market. At this point, it does not appear to be churn and I am simply highlighting what can derail this rebound. Always know what can run you over, be prepared.
The US Dollar index droped for the fourth straight day as it continues to see selling pressure. Gold, silver, and crude oil did make reversals today after experiencing some hefty selling. Commodities across the board did rally as the CRB index closed up +5.26 1.6%. With the Fed keeping the monetary flood gates commodities will continue to enjoy the push from free money.
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