As much as I hate reminding you, the Fed meeting runs through today – with announcements expected tomorrow so…….you know what means.
Risk event ahead – as the statement will be released Wednesday at 2 p.m.
Obviously these Fed announcements are what the market’s hinges on these days, as the possibility always exists ( as the Fed has proven in the past ) that they “might” say or do something shocking. Tomorrow’s announcements may provide clearer language on “tapering” – but I doubt it. I’m going to assume they move forward with the continued stance that “tapering will remain data driven”.
The debate is pointless, but what is important is how you choose to position yourself prior too, and then of course “after” the news is out.
From a technical perspective “risk” could easily make one more “little jump higher”, as equities still look “alive” all be it exhausted, the U.S Dollar still appears to be trapped in its downward spiral.
I would look to “sell” any possible “uptick” USD takes tomorrow ( if any at all ) PENDING they don’t announce a tapering, as this should just keep USD steadily on its way to the basement.
“If” by some wild stroke of insanity – they “do announce tapering”, it will require more than just a couple of hours tomorrow, to get an idea of what markets will do with that, and I would suggest to anyone looking to trade it……..let things settle out / calm down BIG TIME before even thinking about entering.
I’m back from a short ( but wonderful ) holiday and ready to go here again. I’ve got a few tiny irons still in the fire, but am for the most part – sitting in cash. As much as one would love to “get in there” and take advantage of “whatever pans out tomorrow” the responsible thing to do is to wait.
Wait I shall.