A slightly higher than expected first quarter GDP reading set us up for more positive momentum. Get ready for the Fed noise trade if you're fast enough. Again, short of a bizarre statement, I'd expect a resolution to the upside, though too much of a move will likely get sold later in the week as we are already technically overbought. Are you fast enough? Keep a close eye on price relative to the daily VWAP!
o Federal Reserve Statement - Quarter Point Cut Across the Board
1:30PM CST UPDATE: Tepid statement; tepid market response. Note the slight reversal in the Long Tech/ Short Commodities trade! Day isn't over yet though.
POST CLOSE UPDATE: The market got taken up too far in advance of the announcement and the tepid, "we're probably done" tone of the statement led to a sell the news phenomenon. Since the market was arguable overbought going in, I suppose it wasn't a big surprise though I was ticked to close my hedges too quickly when price action held in there longer than I expected. Well, that's the nature of the beast, so to speak. Just about matched the market for the month with significantly less exposure, which I'll take any day. I'd say tomorrow holds a positive expectation.
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