Today, the Fed raised the discount rate to 0.75%. One good thing is that financial condition has improved, and it is bad as this strengthens the dollar and reduce lending.
Commodities may be strained in the short term, however, any dip is seen as a buying opportunity. There is no reason to panic. Just hold your shares and ride through the weekend.
Stocks to buy remain the same. My favorites are Alcoa Inc, Las Vegas Sands, MGM Mirage.
Bank Of America ran up really fast, expect a bit of profit taking.
Economic data to watch:
CPI
The next rally is still in place. Dow could actually make new highs by the first half of the year.
Today candle action is good for all sectors but the Fed latest news may change the situation. It was supposed to be a super bullish day tomorrow as indicated by technical analysis. However, Fed decision may strangle the rally for awhile.
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