Tokyo down 1/3 of a percent, London up a 1/3rd of a percent. US futures up marginally this morning. All the focus today will be on the FOMC policy statement to be released at 2:15. For the past 8 statements, the Fed has said "economic conditions…warrant exceptionally low levels of the federal funds rate for an extended period". I think it's likely they change this language to a more hawkish tone considering the recent raising of the discount rate.
I am looking to work myself into a bunch of longs in the next couple days for a strong push through the 1,150 level on the S&P. The market, after a 9% pull-in, bottomed at the beginning of February and pushed back to highs. For the past 2 days, we've sat on highs with relatively low volatility. A minor attempt to sell-off occurred in the late morning yesterday but stocks promptly recovered closing positive for the day. Shorts are trapped and it seems likely we see higher prices sometime very soon. I will look to buy a drop in equities for a swing long should a change in the Fed's statement cause selling pressure.
"After paying back about $51 billion from the two most recent transactions, AIG still owes about $50 billion." (The Week)
-What a long road for AIG. Though I am amazed they've paid back half so quickly. But, it comes at the cost of two profitable units of the AIG empire.
All Eyes on the Fed, Change in Language Seems Likely
Tokyo down 1/3 of a percent, London up a 1/3rd of a percent. US futures up marginally this morning. All the focus today will be on the FOMC policy statement to be released at 2:15. For the past 8 statements, the Fed has said "economic conditions…warrant exceptionally low levels of the federal funds rate for an extended period". I think it's likely they change this language to a more hawkish tone considering the recent raising of the discount rate.
I am looking to work myself into a bunch of longs in the next couple days for a strong push through the 1,150 level on the S&P. The market, after a 9% pull-in, bottomed at the beginning of February and pushed back to highs. For the past 2 days, we've sat on highs with relatively low volatility. A minor attempt to sell-off occurred in the late morning yesterday but stocks promptly recovered closing positive for the day. Shorts are trapped and it seems likely we see higher prices sometime very soon. I will look to buy a drop in equities for a swing long should a change in the Fed's statement cause selling pressure.
"After paying back about $51 billion from the two most recent transactions, AIG still owes about $50 billion." (The Week)
-What a long road for AIG. Though I am amazed they've paid back half so quickly. But, it comes at the cost of two profitable units of the AIG empire.
