The Federal Open Market Committee (FOMC or The Fed) meets eight times a year. At the end of these two-day affairs, precisely at 2 p.m. the “Statement” is read, preceded by a one sentence report on whether or not intersest rates (the Fed Funds Rate) is changed.
Unless a surprise happens with the interest rate announcement, traders and analysts look to the language contained in the Fed’s page and a half statement for indications of the august body’s thoughts on the health of the economy, and what they might be doing with monetary policy in the future.
It’s such a popular thing to do, that many financial sites post marked up documents comparing the previous and current statements word-by-word.
I believe it would be useful for us to see why the global markets have traded up since the Fed released their most current statement.
Let’s take a quick paragraph-by paragraph review of the document and translate what the Fed-speak really means…
Happy Saturday to you! I just want to take a few minutes today to update you on what’s been going on in the market.
This week saw some great upward movement, with the S&P 500 hitting a new all-time high! In today’s market update video, we’ll discuss what’s been driving the market higher. I’ll also show you a great tool for judging just how strong the market’s momentum is, and how to determine if this bull run will last.
With all of the upward movement this week, a lot of long trades saw some great profits, including a 200% gain my Stealth Profits Trader subscribers had the chance to take on the final leg of our position in Comcast Corp. (CMCSA). To learn how you could act on opportunities like this, click here to learn about the incredible deal my publisher is offering.
And finally, we’ll look at some of the best performing sectors to see where our best profit opportunities are coming from.
Click here to watch.