The S&P 500 had its worst one-day drop since July 7th with the index losing 1.3% to 994. What brought the bears out of hibernation? Dick Bove! After he said bank earnings were unlikely to improve in the second half of the year, the markets took a dive. Who knew he had this kind of power?? Memo to Mr. Bove: Any chance you can say things will improve today?? Tuition payments are due this week!
But, that was yesterday, and today is Fed Day!! And all eyes will be on the statement, because it's fairly certain the FOMC isn't going to budge on the target rate. Actually, I have a better shot of playing shortstop for the Yankees than the Fed moving on rates today; but the statement--and confidence--will be what moves the markets.
The only notable drama for the statement will be news about the Fed's Treasury purchase program. All will wonder if it will be extended, because the Federal Reserve is on a pace to complete this by mid-September; and this is the final meeting until then. So, if anything will be done, today has got to be the day.
The Fed decision is scheduled for 2:15NYT. I'll post an analysis soon after.
Todd M. Schoenberger, Managing Director
LandColt Trading, Inc.