The after the bell reports resulted in a mixed bag of price action results.  GOOGL soared, but MSFT seemed to miss a step indicating a lower open this morning.  After the morning rush in reaction before the bell reports, there is a good chance the market slips into a light and choppy pattern as we wait for the FOMC decision.  If that not enough, FB and AAPL report after the bell setting the stage for a Thursday morning gap.  Your guess on direction is as good as mine!  Then later tonight, the President will unveil another massive spending plan in a joint session of Congress.  Indeed a busy week of data!

Overnight Asian markets saw modest gains by the close in a choppy session at investors grappled with economic data.  European markets trade with modest gains this morning with the Fed meeting in focus.  The U.S. displays a mixed bag this morning as the investors try to digest an overflowing plate of data headed in our direction.  Anything is possible, so plan your risk carefully.

Economic Calendar

Earnings Calendar

The Hump day earnings calendar has 190 companies listed, ready to report quarterly results.  Notable reports include AAPL, FB, AFL, ARCC, ADP, AVB, BA, BSX, EAT, CAKE, CME, CDE, DB, EBAY, EQIX, F, GRMN, GD, GSX, GRUB, HUM, LC, MGM, MAA, MCO, NSC, ORLY, PSA, QCOM, ROK, R, SNY, NOW, SHOP, SIRI, SIX, SPOT, TDOC, TEVA, VVV, WELL, WING, WH, YNDX, & YUM.

News & Technicals’

We had a mixed bag of results after the bell earnings reports, with GOOG soaring and MSFT, AMGN, and TXN looking to gap lower this morning.  Today the report ramp-up, including the giants FB and AAPL stepping up after the bell.  Suppose that’s not enough to we also have the FOMC Announcement at 2 PM Eastern with the press conference to follow.  Tonight the President will address a joint session of Congress to unveil another massive spending plan of nearly $2 Trillion.  India once again reports record new cases and fatalities, and according to some reports, the numbers could be underreported by nearly half as overfull hospitals turn people away.  Ahead of the Fed decision, the 10-Year Treasury rallied above 1.65% this morning, and the 30-year climbed to 2.321% as inflation concerns grow.

On the Techincal front, the bulls remain in control of the trends, though they have experienced a choppy consolidation over the last couple of weeks.  The T2122 indicator continues to display a short-term overbought condition, but as the market reacts to a tidal wave of data, anything is possible.  While the market tries to climb a wall of worry, the VIX is also consolidating above recent lows.  That said, the best we can do as retail traders is stay with the trend, avoid overtrading and complacency, ready to react if the market suddenly reveres.  Expect the market to become light and choppy after the morning rush as we wait on the FOMC.  Then anything is possible.  Remember, with FB and AAPL, reporting after the bell tomorrow’s open could easily begin with a gap.  The question to be answered is up or down?

Trade Wisley,

Doug