General Options Blog

FED Finger

Earlier this year stock prices were soaring to levels not witnessed since the Mesozoic Era.

What a difference just a few months can make.  The happy, buy everything days of Spring, have morphed into the, stock up on the Doomsday food supply kits and head to the bunker, days of Fall.   Yes fall...... its coming....... time flies when your busy staring at a wedge pattern - waiting for it to resolve.

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Well FED

It's been  several weeks of grazing upon some nasty 2015-esque consolidation since the Monday market crash, and the bulls had the energy heading into this afternoons FED decision.    Those peculiar spikes to the upside earlier this week made a lot more sense later today... at least for a little while.

When the $SPY was defended at $195, then $196 and today at $200.... the buyers were spot on.  The FED came out and told the world, the IMF, the emerging markets, anyone looking to repay or take on more debt, exactly what they wanted to hear.  No policy change.  And if you listened to Janet Yellen, in between all the ummms and ahhhs she managed to come across as if rates weren't going to rise anytime soon.

One question she addressed even asked if rates will ever rise again.  Yellen, in reply, stated she could not rule that out, even if it was something she didn't expect.  That, to me, was shocking.  I joke about the fact interest rates haven't been hiked since the industrial revolution, but the FED chairwoman left open the chance that rates will remain at zero forever.... forever?  Wow.

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