9:00am (EST)
We could have taken a victory lap yesterday as we have been saying for months the Fed would NOT cut is bond-buying purchases in September but we didn’t as we are more focused on being right with our option trades then predicting what the Fed will or won’t do. But it was good to know we nailed it.
Wall Street and the talking heads were stunned when the news was released at 2pm on Wednesday the Fed would check its poker hand as most expected a $5-$10 billion cut. Here were our thoughts on Sunday night in the Weekly Wrap and Monday morning with the Daily:
“Wall Street has been expecting the Fed to cut its bond purchases and that might imply that a little bit of tapering is already factored into the market. We have been in the camp that a QE cutback won’t come until December and with the amount of taper talk all summer it could be a shock to the market if the zombies don’t do one.” (END)
Needless to say, the indexes reached fresh 52-week and all-time highs as the bulls held their gains into the close. (continued…)