Price Gyrations

The market experienced the typical price gyrations after the Fed put all its card on the table yesterday afternoon.  Sellers were expressing their disappointment at the close, but this morning the Futures are trying to open the day positive.  With several market-moving reports before the open anything is possible and swing traders may still find it difficult to find an edge this morning.

Overall trends are still bullish, but the bulls are currently struggling to find inspiration with the Fed projecting more rate increases on the way.  However, the bears are also struggling and thus far have not had the inspiration to maintain a serious threat.  As the indexes test the strength of current trends, watch for the potential of quick reversals and whipsaw.  Our edge will return, but we must wait for it and avoid forcing trades as the market thrashes around trying to find a directional conviction.

On the Calendar

A very busy day on the Economic Calendar today.  At 8:30 AM we have four potential market-moving reports. Durable Goods Orders, GDP, International Trade in Goods and Jobless Claims.  Also at 8:30 AM, Corporate Profits, Retail Inventories, and Wholesale Inventories.  Pending Home Sales come out at 10:00 AM followed by the EIA Natural Gas report at 10:30.  The Kansas City Fed Manufacturing index is at 11:00 AM with 3-Bond events between 11:00 AM and 1:00 PM.  We have two Fed Speakers this afternoon with Kaplan at 2:00 PM and the Fed Chair at 4:30 PM.  Farm price @ 3:00 PM with the Fed Balance Sheet and Money supply to close the calendar day at 4:30 PM.

On the Earnings Calendar, we have 19 companies reporting today.  Before the bell, CAG, CCL, MKC, and RAD are among those reporting.  After bell AEHR & CAMP reports along with three others.

Action Plan

After the Fed announced a 25 basis point rate increase and suggested, there are four more possible increases possible the launched into its normal gyrations but ended the day with the market expressing some disappointment.  The Dow closed down 106 points but stopped short of breaking the current uptrend.  The SP-500 and the NASDAQ also ended the day with sellers in control but held onto the bullish trends at the close while the Russell slid sharply south closing below its short-term trend.

Asian markets closed down across the board with European markets currently flat to mostly lower.  US Futures continue to sing from the same sheet of music pumping up for a bullish open this morning.  However with 8-Economic Reports an hour before the open, four of which are potential market-movers anything is possible.  The best we can do is wait and watch for a directional conviction.

Trade Wisely,

Doug