1:50pm (EST)
Futures were indicating a flat open this morning as the market awaits the decision of the Fed’s FOMC meeting. The news will be out shortly after 2pm and we have some last minute updates for our current trades we need to cover before the announcement.
Ben Bernanke is in a pinch and needs to make a policy statement that is going to please Wall Street. Many pros are saying the Fed has run out of bullets which is why they are calling “Operation Twist” a joke. Our view is that the real problem is overseas but there is risk of a “sell the news event” if Big Ben drops the ball.
In other news, Existing home for the month of August showed an increase of 7% to 5 million units versus expectations for 4.75 million units. The real problem with housing is that credit no longer seems to be a problem it’s the availability of credit worthy borrowers that is the challenge. Without jobs, people can’t afford the houses anyway no matter how low rates are.
As we head to press, the Dow is down 25 points to 11,383 while the S&P is off 6 points to 1,196. The Nasdaq is showing some strength and is trading higher by 11 points to 2,601.
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