- 11
- Dec
Daily US Stock Market Hours Report and Analysis - THE BIG DAY!
This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity
Ok, here’s my take for the Fed release today:
1. MOST LIKELY : No more than 25 basis point rate cut.
There are really little reason why the Fed should cut rates. A rate cut would only increase core inflation and deflate the already beaten dollar. Controlling inflation is still the number 1 concern of the Fed and nothing’s going to change it. However, Uncle Ben has proven himself to be highly subject to market pressure and so, 25 basis points seem just right.
Today’s the BIG DAY! The Day of the FOMC release! No trading today due to large moves possible after the release. I believe the Star Trading System will provide us with more reliable signals after the release tomorrow after the market has decided where it wants to go.
2. LEAST LIKELY : 75 basis point cut.
Don’t even think about it.
3. MOST DANGEROUS : No cut.
It is the most dangerous and yet it is POSSIBLE! Like I said, there are really little reason why the Fed should cut right now.
4. MOST FAVORABLE : 50 basis point cut.
There remains a marginal possibility of a 50 basis point cut should Uncle Ben decide to make it a final cut. This could spur the Santa Claus rally everyone’s wishing for.. (well, not everyone since a lot of investors are already shorting positions so far).
5. MOST RELIABLE : Trust in the US economy.
Its still the greatest story nevertold, its still got the kind of brains no one else in other economies have and its still the forerunner in all kinds of technological advancement and no matter what the Fed does, the US economy should still do well in the long run.
What’s your take? 
Comment Now!
Thought For The Day : “Rules Are The Chains Within Which One’s Emotions Must Be Contained”
