End of Day Update:
For all the hype over the Fed meeting, the market sure didn’t seem to care, finishing up a fraction of a percent. The thing we need to remember is those that hype up these events are in the business of selling eyeballs to advertisers. The more sensational they make the story, the more money they make.
The Fed did a good job of not surprising anyone and is why we finished unchanged for the day. Bulls saw what they wanted to see to keep holding and bears got what they expected and continue shying away from the market. When no one chances their mind, we don’t get the waves of buying or selling that drives price moves.
Volume was also fairly muted, only matching yesterday’s upside move. In a buy-the-rumor type of trade, we saw most of today’s strength come a day early. But that is how the market works. Wait to trade the headline and you are too late.
This was just another potential stumbling block the market put behind it. While we could not hold on to the intraday highs, this is one more bearish catalyst we can cross off the list. If this market wants to keep going higher, no matter what we think personally, don’t fight it.
Jani Ziedins (pronounced Ya-nee) is a full-time investor and writer who has successfully traded stocks and options for more than a decade. He earned a B.S. in Mechanical Engineering from the Colorado School of Mines and an MBA and M.S. Marketing from the University of Colorado Denver. His prior professional experience includes manufacturing engineering at Fortune 500 companies, structural engineering, small business consultant, collegiate instructor, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two young children.