Fed Day Move Higher

Posted by downtowntrader | 8/05/2008 08:47:00 PM | 0 comments »

Stock ripped higher today well before the Fed released their statement and then continued to surge higher after the release. However, after huge moves the indexes are basically back up to lateral resistance and while volume was higher then yesterday, it was nothing to write home about. Often it takes a few days for the markets to digest what the Fed had to say and then "price it in", so I wouldn't put too much into today's move. I still like biotech, medical, and pharmaceuticals as leaders if the markets are going to rally here. Also, notice that commodity and AG stocks continued to roll over today. They may be the stocks to short for the next move lower whenever that occurs.

Good Trading,