This is because it's move tomorrow is expected to be pretty predictable-just cutting back by $10 billion on the bond buying program-aka QE. Instead the big news is expected to be economic data.
"Economic reports – GDP and private payroll data - should trump the Federal Reserve's meeting Wednesday, unless there's an unlikely move by the Fed to change its message."
"The Fed ends a two-day meeting with its 2 p.m. ET statement, and it is expected to announce it will pare back its quantitative easing, bond buying program by another $10 to $45 billion a month."
"Economic reports – GDP and private payroll data - should trump the Federal Reserve's meeting Wednesday, unless there's an unlikely move by the Fed to change its message."
"The Fed ends a two-day meeting with its 2 p.m. ET statement, and it is expected to announce it will pare back its quantitative easing, bond buying program by another $10 to $45 billion a month."
"Unfortunately, it should be pretty dull. We think they'll do some straight forward updating of the statement to reflect that some of the economic data has improved since the weather normalized, but that's about it," saidBarclays chief U.S. economist Dean Maki. "We don't think they'll change any of the policy paragraphs or give any new signals on tapering. We think they'll taper the $10 billion as expected."
http://www.cnbc.com/id/101626218
This is assuming there is no surprise in what the Fed says. If instead there there is a major surprise then we should expect it's statement to have a big jolt on the market. It seems likely that the Fed itself doesn't want this to be the case.
The big market mover is likely to be tomorrow morning at 8:30 when first quarter GDP is released.
"But the data the Fed will review during its meeting Wednesday will also interest markets. First quarter GDP is released at 8:30 a.m. ET, and economists expect a super sluggish 1.2 percent rate of growth in the first quarter. ADP also releases its private sector payroll report and expects a 210,000 increase in April payrolls, close to what is expected in the government's Friday jobs report. Employment costs are released at 8:30 a.m. and Chicago PMI is issued at 9:45 a.m."
Today, I saw Wells Fargo rise back up to just under $49.50 at market close. All I need is a $.30 up move tomorrow morning and I'm in the sweet spot with my 60 calls and will call it a day. Microsoft on the other hand sagged back to $40.50 after topping early at $41.19-I had hoped it could have gotten a little higher. A positive reading tomorrow would set me up ideally though I think these are two pretty good names regardless.
No comments:
Post a Comment