Because of the strength in the economy over the last month, I'm expecting "only" a 1/2 point cut in interest rates tomorrow following the FOMC meeting. This also gives the Fed more leeway for further moderate cuts in the future.
The market internals improved as did the screened stock ratio at 7 to 6 favoring buying. Neither indicates that we have turned around, so "lite" mode is still safest. Expect the normal volatility after the Fed announcement (2:15 PM ET), so if you don't have a buffer above your buy price it is better to sell the positions rather than have to take a loss on a wild swing causing you to stop out.
The stock screening was pretty well mixed, however, I was a little surprised at how many oil stocks showed up, as it seems they have been played down by analysts recently.
Longs: ADVP, ANF, ASD, BAX, BSX, CMX, EC, SFD, SLVN and VPHM.
Good Trading!!
Sam
savvy-trader.com |
