Good morning. Futures are a touch higher, sp +1.5pts, we're set to open around 1706 - a mere 3pts from the key high. Metals are weak, with Gold -$6. Oil is a touch higher. The US markets have a very interesting day ahead.
So, we're set to open a touch higher, but I sure don't expect >1709 before the FOMC.
We're likely going to see some serious price action in the last two hours of today..although perhaps most importantly to keep in mind, the real market reaction might not be seen until after Bernanke has completed his press conference, and that could be as late as 3.30pm.
My simple rule today..no trading until after the FOMC at 2pm.
If sp >1709..no short trades..regardless.
Will consider a short trade if price action looks weak.
Over in Permabull land, Mr C believes QE will not be reduced today. That is rather a bold call - since the mainstream consensus is for a reduction of $10/15bn, so it'll be interesting to see if he is right.
Walker with a special Oil/Metals update
*I will endeavour to be here across today, although I'm out of chocolate..so...could be a problem.
8.37am..oh noes....Blankfein on clown finance TV..just said something the Gold bugs will be highlighting for months..maybe years...
(rough paraphrase) 'unlike a FIAT currency...Gold has no intrinsic value'.
I'm sure someone will post up video of that later!