Wednesday, September 23, 2009

OK You Can Exhale Now.... FOMC Statement

The Federal Reserve released its statement (~link~) on their September meeting and it basically sent the dollar lower. They didn't take away the punch bowl! The Fed also said it would extend its $1.25 trillion of mortgage-backed securities purchases from Fannie Mae and Freddie Mac into the first quarter of 2010. It previously was scheduled to end those purchases at the end of this year.

The dollar immediately dropped on the press release from 76.2 to 75.88 ~link~

Dollar continues it's decline, thus equities are up, commodities (metals) up although oil is down after the EIA weekly report showing an increase in supply. In the Itz Pix Portfolio Apple (AAPL) continues to be the hot stock this week...$200 looks likely soon! Google (GOOG) following right behind. Alcoa & Hecla Mining strong too...

The charge here in equities is also a chase to the end of quarter performance by money managers, look at hedging positions by selling some out of the money calls on the big gainers and buying some put options.

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