Wednesday, June 22, 2011

FOMC tonight

Euro: Got stopped out trying to catch the '5' wave turning point. The market sold off on the greece bailout, despite it's positive effects. A sell on the strength of any rally seems to be the key play still seems to be the correct play.

QE3 obviously unlikely given the current inflationary concerns, the FOMC may state a more conservative statement to reduce inflationary expectations. A qtr ago, they bluffed about inflation being a non factor, now that there are signs of inflation, they will adjust their rhetoric to minimse the negative impact of inf. expectations.

Range bound trading expected until tonight's FOMC statement, however I am taking a short 15 contracts on sp500 with an obvious statement by the Bernanke claiming that it will be unable to operate monetary easings due to inflationary data finally showing some concerns.

Gold is the only likely risk on trade that will perform if markets go bearish again tonight.