Hello All,
Rates unchanged and not too hawkish with regards to the verbage. The Fed believes our economy has not sustained enough growth to warrant higher rates. If we're not having enough growth, why is that commodity prices could rise? Easy answer. Low rates are fueling investments across the board. It takes money to make money, and the institutions will continue to buy buy buy. Crude was the eye opener of the day and is retesting highs once again with OPEC meeting today with respect to production. The speculation with OPEC has been factored into todays rally, and the key factor will be tomorrows DOE data.. API data showed a rise of 400k barrels, while analysts expected a rise of 1.9m barrels. It seems as though they want to take out all the stops above before making a bigger fall. Overall we should have a fairly volatile Wed. with PPI and crude inventory data out in the morning. Exit all positions and observe for the time being. If the Euro can squeeze above 1.3810 then we would be headed for 1.3950 which would coincide with ES around 1175, and crude around 84. Emergency plans to help out EU members were put in place, which helped fuel support in the Euro. But now that the emergency plan is in place, who will be the first to ask for assistance? We'll just have to wake up one of these mornings to find out!
Best,
Arman Vahdatinia
Futures & Options Strategist
1-877-338-EXPO [3976] ext. 25
www.ExpoFutures.com
*There is a risk of loss trading futures. Past performance is not indicative of future results.
Rates unchanged and not too hawkish with regards to the verbage. The Fed believes our economy has not sustained enough growth to warrant higher rates. If we're not having enough growth, why is that commodity prices could rise? Easy answer. Low rates are fueling investments across the board. It takes money to make money, and the institutions will continue to buy buy buy. Crude was the eye opener of the day and is retesting highs once again with OPEC meeting today with respect to production. The speculation with OPEC has been factored into todays rally, and the key factor will be tomorrows DOE data.. API data showed a rise of 400k barrels, while analysts expected a rise of 1.9m barrels. It seems as though they want to take out all the stops above before making a bigger fall. Overall we should have a fairly volatile Wed. with PPI and crude inventory data out in the morning. Exit all positions and observe for the time being. If the Euro can squeeze above 1.3810 then we would be headed for 1.3950 which would coincide with ES around 1175, and crude around 84. Emergency plans to help out EU members were put in place, which helped fuel support in the Euro. But now that the emergency plan is in place, who will be the first to ask for assistance? We'll just have to wake up one of these mornings to find out!
Best,
Arman Vahdatinia
Futures & Options Strategist
1-877-338-EXPO [3976] ext. 25
www.ExpoFutures.com
*There is a risk of loss trading futures. Past performance is not indicative of future results.
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