This Fed Statement Should Be Important
- Posted by Greg Harmon
- on June 19th, 2013
I have no idea what Bernanke might say. Maybe as a lame duck he takes of off the niceties and tells America he is out of ideas and we are screwed if Congress continues to do nothing. Probably not. Maybe he convinces the FOMC that they should continue QE at the current pace until he retires so he can go out on a long high note. There are many people that watch what the Fed does and says as a full time job. They have volumes to say about what the message might be and how to interpret it. I care only how the market interprets the message and have done a little digging. The chart below may seem a little crowded but you can embiggen it. The ETF’s of the 4 major averages, The Dow ($DIA), S&P 500 ($SPY), Russell 2000 ($IWM) and Nasdaq 100 ($QQQ) are stacked on top off each other. The vertical lines are placed at the
dates of the FOMC meetings over the last 3 years. As a technician I am interested how the statement may or may not impact these indexes. The red lines are when the FOMC meeting changes the course of the market. Not the major trend but the intermediate trend. You can see that it happens often. In fact it has not gone more that 3 meetings without an intermediate change, until this current streak of 4 meetings. with the markets running flat into the meeting it gets more exciting as the change, if it comes could be either way. How are you prepping for the the announcement?
Join the Dragonfly Capital Views Premium Membership
Want to learn more about Dragonfly Capital Views?Dragonfly Capital Views Performance Through May 2013 Expiry and sign up here.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Macro Month in Review/Preview August into September 2014
- Macro Week in Review/Preview August 29, 2014
- Premium Earnings 8-29-14
- Stocks and Bonds Rising Together – Its Not So Strange
- Keep It Simple: Ford Stock Is Rising So Buy It
- Premium Earnings 8-28-14
- The Relative Weakness in Gold Aint Over Yet
- Eyeing a Meal and a Trade in Buffalo Wild Wings
- Premium Earnings 8-27-14
- Re-Emergence of the Emerging Market ETF