Tomorrow looks like the markets could be brutal if your a bull in the stock market with the way the Asian markets are looking. Everytime you think the market is going to crash, the FED comes in and saves the day. I think the FED is out of options. We are in a bear market and traders need to accept that fact. Perhaps this is another setup by the powers that be, and next week we could see the bottom with the decision from the FED on interest rates. The 30yr bond is approaching Jan 23rd lows of 4.10% yield. The next 12 Trading days I expect to be VERY volatile . Every market is swinging all over the place, from stocks, commodities, to forex. What the FED does next week is huge and the market seems to be setting up for a big move. I think bonds will keep going lower in their yields until we get closer to next weeks meeting, which means weakness in stocks. Tomorrow should be an interesting open. There's a good chance tomorrow we could break through the January lows. It would be the ultimate scenario to have the markets looking there worst so that the FED could pull off another miracle right before options expiration.
Oil ($110 today)
Various other commodities hitting all time highs recently
The Euro at $1.56 to USD
Stocks approaching multi-year lows
You have a choice- To trade or not to Trade.
Remember those stops. Don't over leverage. yourself. Trade with a Plan.
Good luck.
One last note- Congress Weighs Budget Plans
"Democrats are backing twin $3 trillion budgets for 2009 that would produce sizable surpluses in a few years and provide generous increases for many domestic programs, but only by assuming major tax increases when President Bush's tax cuts expire in about three years.
All three major presidential candidates planned to be on hand Thursday in the Senate for votes on taxes, a one-year ban on lawmakers' pet projects and a vote to pass the measure late in the day. The House also votes on Thursday." By Andrew Taylor, Associated Press Writer
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