Seeking Alpha

InTheMoneyStocks'  Instablog

InTheMoneyStocks
Send Message
InTheMoneyStocks.com is a proprietary research, consulting and investment alerts company focused on guiding investors, swing traders and day traders to financial success. Their PPT Methodology is a proprietary blend of price, pattern and time discoveries that has helped produce 216.37% net... More
My company:
InTheMoneyStocks.com
My blog:
Rant & Rave - Pro Traders Blog
  • Financial Stocks Weak: FOMC Leading Indicator Alert 0 comments
    Jun 18, 2013 1:59 PM | about stocks: SPY

    The markets continue to roar higher with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) trading at $165.60, +1.10 (0.67%). This is the second solid up day in a row, both coming prior the FOMC Policy Statement tomorrow. While the markets are charging higher into this major event, financial stocks have stalled and are flat to negative. Goldman Sachs Group Inc (NYSE:GS) is trading at $163.65, -0.46 (-0.28%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $53.89, +0.04 (0.07%).

    Does weakness in the financial stocks signal FOMC policy disappointment? Maybe a stalling to QE? This monster rally up into the meeting with the financial stocks lagging does suggest this thesis and puts intelligent traders on high alert.

    The key here is to understand that the financial stocks are directly correlated to the quantitative easing (money printing) that the Federal Reserve has been doing. In other words, they would be the most directly influenced by any slight change in monetary policy. Therefore, their weak trading could be a signal.

    Gareth Soloway
    InTheMoneyStocks.com

    Stocks: SPY
Back To InTheMoneyStocks' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.