Anticipation
It’s been nine long years since the financial engineers have raised rates and the big day is upon us tomorrow. Will she or wont she? Still not a layup here. The S&P popped 1% today as oil firmed and junk bonds rallied a bit. These two events eased tensions.
Where we go tomorrow is anyone’s guess, and it should be really good theater even if you’re not stock and market junkies like us.
Fed funds futures, used by investors and traders to place bets on central-bank policy, showed an 81% likelihood of a rate increase by the Fed this week. So there’s that. Fed funds were always a good guide back in the day when we actually raised rates on occasion.
Volume was light today and breadth was horrible, so don’t get too excited.
Four of the 5 horsemen of this market were down on a nice up day: NFLX, GOOG, AAPL, and LNKD. AMZN was pretty much flat. Bad sign.
See you tomorrow.