Post FOMC Musings & S&P Charts (SPY)
|ES_F 1 min|
Surprise surprise Bernanke left the rates UNCH. I was kinda hoping for some fun, but of course i was disappointed. Though we did get some decent comments out of the committee regarding unemployment and the fact that the economic “recovery” is not substantial enough to improve unemployment.
Take these statements for an example:
Fed says recovery insufficient to bring down unemployment
The FOMC said, “Information received since the Federal Open Market Committee met in November confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment.” So are they are admitting they are out of bullets with this?
and read this…
FOMC maintains existing policy of reinvesting principal payments
The FOMC said, “The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings. In addition, the Committee intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.”
Looks like the fed again has no real play or idea in hell what to do with our economy, they are just throwing shit at the wall hoping something sticks..
So they will keep printing money… Check…Considering the sell off from 1242 to 1232.75 in 45 minutes
following the release that should tell you something about what a few big traders thought about the market and FOMC.
|US dollar 5 min chart. ascending triangle|
Clearly there is money rotating out of the wall street darling tech stocks today as NFLX still down, AMZN, FFIV, PCLN etc all getting hit.
I believe short term the money coming off the table in the form of profits in these stocks is being rotated into US dollars as the UUP and US dollar futures have seen large buys following the FOMC..