Wednesday October 30, 2013 |
Good Morning MOJO Swing Trader, MOJO Model is sitting in 50% cash and ready to make a swing only if the pick presents itself. Today, there is an FOMC Meeting at 2:00pm.
With the market one surge away from setting an all-time high of 15,800 - this worries me. Usually, you will see chart patterns that reflect all time highs with the market. Doing my research Sunday night I noticed just the opposite. That many charts were failing and breaking down. This is a bad formula for the market because if the market dives (and the DOW is based in a small group of stocks) these patterns will get worse and the market will take a longer time to recover. This recovery takes a long time because there are no buyers and more sellers. We see this in stock examples such as LIVE, OXBT, SIFY and other losers that will take very long to recover.
Now, the month of October is ending and a brand new month is upon us. The Model Portfolio finished green. The re-structure early in the month turned out to be a good idea. The Model sold all the losers, took the loss, made some great new picks and made all of the loss back plus a nice profit. This was due to picks like RSOL, FNMA, SKUL, PHOT, HILL. The Model finished as follows: Spooky Update: Investors will be all ears for what will be said after the Federal Open Market Committee, or FOMC, meeting today even as the near-term future of the Federal Reserve's monetary policy and its decision about its stimulus program appear to be a foregone conclusion.
The Fed is widely expected to leave monetary policy unchanged and key interest rates at historic lows, and to also leave its $85 billion-a-month bond-buying stimulus program untouched. However, what will be keenly watched is the FOMC's take on the current health, and its prognosis, of the nation's economy, which could have a considerable influence on the timing of the Fed's decision to begin winding down the stimulus that markets around the world have gotten so attached to. Futures on the Dow Jones Industrial Average and those on the Standard & Poor's 500 Index were both up 0.3 percent, while futures on the Nasdaq 100 Index were up 0.4 percent.
"We expect no tapering and no changes to forward guidance" at this week's meeting, Michael Hanson, senior U.S. economist for Bank of America, wrote in a note to clients, as reported by International Business Times on Tuesday. Instead, many economists expect the tapering to begin in early next year -- in January or March -- while others say it could be pushed back even farther down the road. On the other hand, a few expect the decision to taper to come as early as at the next FOMC meeting in December, according to a MarketWatch report.
It all depends on how the FOMC interprets employment data, and if they view it to be weak, it could delay tapering until spring, Amna Asaf, an economist at Capital Economics, told MarketWatch. The monetary policy statement announcement is scheduled for 2 p.m. EDT. There will be a new round of MOJO Guru's as MOJO University will be starting classes soon. The classes will be for both day trading and swing trading. Please stay tuned for more announcements.
Thanks for reading, and profitable trading! ProTrader Mike
email: info@mojodaytrading.com
website: http://www.mojodaytrading.com
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