Wednesday, December 16, 2009
Equities are holding firm overnight ahead of the Fed’s policy statement. Traders want to see indications that the Fed sees improvements in the economy. At the same time, they don’t
want to see higher interest rates. This sets up the possibility of a choppy two-sided trade following the release of the FOMC statement. A rally through 1114.25 in the March E-mini S&P 500 is
likely to trigger a rally to 1119.00, then 1122.00. A break under 1009.75 could trigger a hard break to 1096.75.
March Treasury Bonds are trading slightly better. The recent sell-off in the T-Bonds and T-Notes is a sign that traders are anticipating hawkish comments from the Fed. The failure of
the Fed to accommodate these traders is likely to send the Treasuries sharply higher.
February Gold is trading higher. This is a sign that gold traders are betting on a weaker Dollar following the Fed report. The chart indicates a move to $1155.50 is likely.
March Crude oil is trading inside of a retracement zone after forming a new main bottom …
