Today the FOMC lowered short term interest rates 50 basis points to 1%. The market stayed true to form and was very volatile following the news, concluding with a massive drop in the final 10 minutes or trading that landed the Dow and S&P 500 negative on the day. Both indices also logged a distribution day.
Traditionally, a distribution day within the first three days of a new rally signals the rally will fail (about 90% of the time). Since there are nearly no high quality stocks breaking out of sound bases it's really moot point anyway.
Patience is still key, there is no need to swim against the tide.
-Geoff
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