FRB PULLS A GREENSPAN
The FRB measurably cut by .25 bps today to 2% fed funds. The market, up over 150 DJIA points mid-day, sold off to close lower on the very middle-of-the-road, a little bit of this, a little bit of that commentary.
I believe it disappointed both bulls and bears looking for a directional play. It sets up the market for a more lackluster upside, with the SPX 1420-1440 (if it should get there) likely to hold as resistance. I do not like the way the better performing retail stocks (ex WMT) faltered today. They have been leaders, as we enter the gov’t tax rebate season. Will people use the money to buy fuel or an IPOD? This question sounds ridiculous but it will say much about consumer psychology and therefore the direction of stocks as well.
The best winner today? Brazil.
3 years ago • Notes