Monday, March 19, 2018

Pre-FOMC Selling

They are setting up for the FOMC meeting.  Selling stocks and bonds together.  Post opex weakness and FOMC coming up on Wednesday is a double whammy on SPX.  There is decent support in the 2725-2730 area .  I was considering buying the dip on Thursday but I decided to wait because of the complacency I was seeing in the low put-call ratio on the day.  We'll see how traders react to today's weakness, if the put-call ratio can get higher today than last week, I will consider buying near support around 2730. 

Still thinking about the game plan ahead of the FOMC meeting Wednesday, but I am leaning towards a rally in stocks and bonds after the meeting as I don't expect Powell to be as hawkish as he was in his Congressional testimony.

1 comment:

MM111 said...

well that was brutal...