Mid Day Trading Update – Stale Action Before FOMC
Indexes decided to put in a chop session here prior to the release of the FOMC minutes around 2 PM. Intraday traders are lacking the alpha they need to make solid directional trades and most swing traders have no choice but to hang on to their positions through the minutes and hope for a positive outcome.
Sectors are mixed across the board here but most single names are managing to hold their gains from this morning's gap higher. There were only a few solid moves today such as this Las Vegas Sands (NASDAQ: LVS) up close to about 3%. The stock got going right off the open and never looked back. It has minimal pullbacks and has managed to hold all of its gain despite the market chopping around doing nothing.
Apple (NASDAQ: AAPL) has had an interesting session thus far, gaping up and establish a long bias then tanking 7 points back down to $450. Traders on both sides of the coin now are fighting back and forth to figure out where the next leg will be. There are folks advocating for a move right back down to $420 and others eager to buy call options for further buying activity. Place your bets. I personally think the longs will win but not before they lose most of their premiums on their calls.
We'll have to wait and see what the FOMC minutes bring as far as direction out of the broad indexes. For most of you newbie traders, I would highly recommend sitting on your hands until well after the minutes are released!
Stay tuned for further updates!
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