Global equity markets are fairly well-mixed this morning. Most of Asia has turned red today, led in that direction from Shanghai. The notable exception is the Nikkei, and that’s directly related to the big Bank of Japan pow-wow to held later this week. European shares are modestly higher after Consumer Climate, and Import Prices both missed consensus in Germany today, cuz yaknow….bad news is good when monetary policy is the driver. Another thing….Keep on keeping an eye on the Transports, particularly the railroads, and the Small Caps. Sooner or later, these are the forces that will either be dragged higher by the broader indices, or do the dragging themselves.
The macro calendar is light again today, leaving only the weekly Oil Inventories print out there for you to react to. The FOMC probably thought that they would be the main event..at least for this afternoon. As things turn out, chances of the Fed acting at this meeting are about the same as scientists declaring that bacon is good for you. Actually, I hear that with a double seasonal adjustment, it is. Regardless, I will still eat bacon, probably a lot of it, and I will still listen when the Fed does, or says anything. Not because I think they know what they are doing (they clearly do not), but because the markets react (overreact) to it. Hence, I must be proactive, and reactive as far as that bunch is concerned. You don’t have to like the environment provided to adapt to it, and survive in it.
FOMC Decision (LOL): Amateur hour is scheduled for 2pm ET this afternoon. That’s when you’ll get the interest rate decision, and policy statement. There will be no economic projections (these guys probably shouldn’t be making those anyway), and there will be no press conference ( just as well, why say things you don’t mean?, and can’t back up !!) You know gang, Ron Paul wrote a book a few years back titled “End the Fed”…..and you thought he was crazy. Should we end the Fed ?? Maybe, maybe not. What I am sure of, is that this crew is not going to save us from anything. Fire them all, and start over with people who had to kill something if they wanted to eat something. Enough with the “Never had to defend myself in the real world crowd”.
World Series: If you did not stay up into the wee hours, I did…and my NY Mets dropped a tough one in 14 innings to the KC Royals. Give the Royals, or more specifically Alex Gordon some credit for homering in the ninth to push the game on. Game two, tonight…pits the Mets’ ace Jacob deGrom (14-8, 2.54) against Johnny Cueto (11-13, 3.44) of Kansas City. Who will win this game will be decided tonight, but who’s got the groovier hair style may be far more difficult to figure out.
Sarge’s TRADING LEVELS
SPX: 2087, 2077, 2070, 2062, 2055, 2045
RUT: 1159, 1154, 1145, 1136, 1131, 1127
Wednesday Earnings Highlights
Before the Open: BSX (.23), FCAU (.22), GD (2.13), HSY (1.13), HES (-1.21), HLT (.23), IP (.93), MDLZ (.40), NSC (1.41), NOC (2.19), OXY (.05), PCG (.94), SO (1.15), VLO (2.66)
After the Close: AMGN (2.38), BWLD (1.30), GPRO (.29), MAR (.74), MUR (-.92), ORLY (2.38), TSO (6.05), YELP (.07)