The build up to the first potential rate hike since the financial crisis in 2008 has almost reach its climax. Tomorrow we will get the answer to many traders’ question: will the Fed raise the discount rate? Today’s action started off with a very bullish tint, but ended the day with the tint fading. Volume was much lower than yesterday suggesting short sellers were simply closing positions ahead of the fed. Breadth on the S&P 500 was the 3rd lowest since 1954! No one wants to be heavily long or short ahead of tomorrow’s Federal Reserve decision. Cash heavy is an okay position heading into tomorrow.
We will keep commentary short tonight. We remain cash centric and will react as the market kicks off signals. Tomorrow will be fun. Get your popcorn and enjoy the show.
Back tomorrow with more.
