Todays FED Day

Real quick.  Today we have another FED meeting coming to an end followed by a Powell Presser.

With stocks at or near fresh record highs and Central Banks about as dovish as they can get, the risk is clearly there for asset prices to take a hit on anything that the market isn't ready for.

Powell's recent commentary after FED meetings has been about as bullish for asset prices as you can get.

The transitory word is one so many disagree with.  Is the recent inflationary uptick here to stay or not?

I've written about this previously.  Bottom line... the FED has been right for 10+ years.

And being right has meant higher asset prices.  I don't think that is going to change.

However the tight rope balancing act is going to be tougher as the economy comes out of this Pandemic.

Absent the same type of post FED meeting talk we've heard from Powell since last year, there is a risk the market could be disappointed and use today as an excuse to take risk assets lower.

Taper talk perhaps.   Adjusting the dot plot.  Noting the uptick in housing prices.   The market will likely be looking.  And perhaps it will get that excuse.

It makes it tough to be short term long, especially via calls.

However I think we could see bonds get a bid.


Thats it.

To sum it up,  I'd be shocked to see the market continue to sideways chop.  I think the  risk for a pull back in asset prices is there, at least short term.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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