Stock Market Update: March 16 (After Fed Day)
It looks like traders liked the FOMC Meeting announcement today which contained no surprises as the Fed will keep interest rates low and slowly ease out of the mortgage backed securities purchases. Actually, I was kinda disappointed with the lack of movement after the announcement at 2:15pm EST today as it didn’t present any opportunity for us traders to take advantage of much volatility. As I stated, the market is way too overbought and most importantly, risky right now to be entering any long positions. But the market hasn’t signaled to us that it is ready to go down yet. I just look at the inverse etf’s (they rise when the market goes down) and a lot of them are hitting 52 week lows. This tells us it’s still too early to short this strong market. However, keep an eye out on these inverse etf’s as when the market looks for a correction or pullback, these inverse etf’s are gonna be big winners. For now, I am just gonna stay on the sidelines and see what transpires.
