For whatever it is worth, the "gurus" on CNBC seem to think that the Fed signaled a pause in its accommodation policy (all of two cuts and 75 bps) because of the statement that "the rate cut taken to forestall harm to the broader economy."

Right now the equity market is gyrating around unchanged after giving up its pre-cut gains-- a sell the news reaction so far...The question is whether or not the reaction turns into an excuse to take some profits at the end of the month of October, or if the trend-followers will continue to throw money at the long side regardless of any innuedos from the Fed?

Interestingly, the XHB (Homebuilding Sector ETF) has reversed strongly to the downside, and has an Key Reversal to the downside in progress, which could be instructive about perceptions of the health or lack of health of that sector 18 months off of its major top?

In the time it has taken me to write the last couple of paragraphs, the equity markets have recovered strongly into positive territory, and are now in the middle of their daily range... in a tug of war, knee-jerk battle...

Let's see what happens into 3 PM ET, and then beginning immediately after 3 PM ET... for clues about who has the upper hand heading into the closing bell....

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

© 2002-2007 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

Mike Paulenoff Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.