GDP Falls 6.1% – Fed Interest Rate Decision At 2:15PM

April 29th, 2009

This is going to be one of those days where news does have a very important effect on the markets. GDP was just announced and fell 6.1% which was worse than expected. Since the futures had a knee jerk down but are still up since consumer spending seemed to be the only bright spot in the GDP report. So not only do we have to deal with GDP news and trading volatility with respect to that, but the FOMC (Federal Open Market Committee) will announce it’s latest decision on interest rates at 2:15pm. Granted nobody is expecting it to change from 0.25% but the important thing will be their policy statement as it may signal when they expect to raise rates in the futures. Make no mistake, rates will have to go up at some point to counter act the inflation that is coming down the road.

 

Below is the updated S&P intra-day trading targets. I would watch 875 level today if we shoot a lot higher. After that, the 893 level would be a great area to short the market in general.

 

spx13

 

Members and I added some more shorts yesterday with huge short term profit potential – some over 25%. We are already in the green fractionally, so any upside today would be mute to say the least. Below is RT which again I will point out as an amazing shorting opportunity after being up nearly 700% in the last couple of months and hitting a major Fib retracement level. On another note: it’s the day before Chrysler must merge or declare bankruptcy. It will be interesting how CEO Obama – or the new “Visible Hand” – deals with the situation.

 

rt

  • Share/Bookmark

Comments are closed.