We heard from the FOMC today as expected but evidently the market heard some unexpected in the presser as it reversed back to last Thursday’s lows. Given this development, I will try to make the best read of what I am seeing so that we can make a plan for what lies ahead.
The Arms Index is one of the lesser followed market internals, but one that I’ve found helpful in extreme situations. One of those situations presented itself on Wednesday and is worth following into tomorrow.
After the FOMC statement, the short triggers for markets to break down were the rally in the DXY, and the sell-off in Bonds. If these negative factors reverse tomorrow, then I expect a snap back rally.
The main label for a company right now is, “Are you speculative?”
Keep in mind this environment is good for some companies…
How have expectations for FOMC hikes changed and how have markets responded? These are the levels to watch to both the up and down side.
Without the confirmation of a breakdown in volume support, the indices continue to defy the gravity of the negative sentiment in this market.
In this video, I walk through the Daily Chart on GOOGL and point out some of the technicals indicating weakness that GOOGL could continue to roll over. I also discuss some trade ideas, as well as being mindful of risk with the uncertainty around FED news this week.
In this video I walk through a SPX Compound Butterfly I opened to hold this week. I discuss why this is a great strategy to consider during FED new events and things to be mindful of when setting up the trade.