Market Review: FOMC Will Be Center Stage This Week

Ok it’s the Monday after the big move last week that saw the ECB announce the bond buying program that plans to offer assistance to the Euro Zone and try to lower interest rates for embattled debt ridden countries.  Now whether you think it’s a good thing or bad thing, its happening and the trend in the markets have tended to favor a higher move, and we should see that over the next couple of months.

The FOMC will be center stage this week with their announcement as to whether they will “QE3” or not.  I have read through a number of publications where they site a number of analysts who are “Sure” the Fed will “QE3” and then another analyst who thinks it’s the worst idea in the world and the conditions don’t favor it and po-po’s the idea.  At this point it’s a coin flip, my own personal opinion is that they will announce something.  The jobs report was pretty dismal on Friday and if they keep pushing it out the markets could lose confidence and react adversely.  

Today the market action, again, is pretty tight, most traders are going to be waiting for Thursday  announcement, but until then things will be stuck in a small trading range.  Positioning yourself in this kind of trading environment is kind of tricky.  If you have things in the market it might be a good idea to keep good tight stops to the downside if things fall apart.  I plan on just playing the market itself one in particular is the QQQ’s.  It has two big events happening this week the FOMC announcement, and Apples announcement of the iphone 5.  So the QQQ’s could see a lot of movement because of those events this week.  So choose your trades carefully and wisely and I’ll see you back here tomorrow.  Check out our Chart of the Day for Kraft Foods.

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