Tuesday, April 29, 2008

State of the Market - 4/29/08

I expected a quiet day today in the markets ahead of the Fed meeting, but the morning action wasn’t very quiet, as a somewhat flat open was quickly sold and the indices headed lower throughout the morning. Mixed economic news in the form of a higher-than-expected Consumer Confidence reading and more bad news about home sales seemed to do little to effect trading. Around 11:00, the market hit a low and rose throughout most of the rest of the day. Once again, however, some late selling put the indices back toward their lows for the day at the close. The Nasdaq did show some relative strength today compared to the S&P and Dow. Ags and other commodity stocks continued to get destroyed today, perhaps a sign that investors do indeed expect the Fed to show some restraint tomorrow with further rate cuts. Volume appeared to be a little heavier on the S&P and a little lower on the Nasdaq. Overall, it turned into another pretty boring day but I think it is good that we are pulling back a bit here before the Fed decision.

Today will be a short commentary because, to be honest, I can’t think of much else to write about. Until we get the Fed decision tomorrow, it is hard to know what the market is going to do. If you’ve read my recent posts, you already know there are good arguments for being bullish and bearish here. As it is, I have to remain bullish until the market tells us otherwise. Let’s hope we get some movement after tomorrow, and hopefully that movement is upward. We shall see. I am interested to see what the Fed does do. Here is a few interesting articles I found today dealing with inflation and the decision tomorrow to keep you busy while we wait for some news and market movement.

The Fed's Dilemma: Rescue the Housing Market or Feed the Poor

Why Were Stuck With Insane Prices?

I'll be back later if I seen any more charts setting up. Although I haven't been making many moves the past week or so, you always want to remain prepared for when the market decides what it wants to do. Best of luck.

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