Monday, August 07, 2006
What Will the Fed Do?
The SPX closed down today 3.59 at 1275.77. Our position is ok.
The Fed announces its interest rate decision tomorrow.
If the Fed raises rates again expect to see some serious movement to the downside.
If the Fed pauses then in my view the market has already priced this in and there will probably be not any significant movement upwards. In fact investors will probably start worrying about the weak financial data being released and the general health of the US economy all of which has caused the Fed to stop raising rates - and the markets will still drop.
Either way a drop is good for our position. Tomorrow is a key day for us and we will see what it brings.
Until next time.
The Fed announces its interest rate decision tomorrow.
If the Fed raises rates again expect to see some serious movement to the downside.
If the Fed pauses then in my view the market has already priced this in and there will probably be not any significant movement upwards. In fact investors will probably start worrying about the weak financial data being released and the general health of the US economy all of which has caused the Fed to stop raising rates - and the markets will still drop.
Either way a drop is good for our position. Tomorrow is a key day for us and we will see what it brings.
Until next time.
# posted by Paul @ 5:31 PM 
