Jan 28, 2015, (9:18AM EST)
As I had warned earlier, U.S. stock futures and European markets lost their high grounds quickly and turned negative soon after the opening bell in European markets.
Since then, these numbers have been swinging between negative and positive, currently trading within their intraday high and low levels for this session.
Nasdaq futures are flying higher after Apple declared blockbuster earnings. This stock is 8% up in pre open markets after posting “biggest ever quarterly profit reported by a public corporation.” Around 13 brokerages hiked their price targets on Apple’s stock and the company is expected to return $200 billion to its investors in share buybacks. Now, that is the difference between sticking with quality and running after sundry stocks in day trading 🙂 🙂
But the main drama in U.S. markets will start at 2 PM EDT, when the Fed will release its statement about monetary policy and forward guidance.
Till then, the usual pattern will be a range bound and highly volatile trading. And unusual pattern will be big move in any one direction, either up or down depending upon the insider information or leaks about the Fed’s policy.
Real trend in U.S. markets is expected to take place after the Fed’s policy announcement. Expect high levels of chopping and churning in currency, bonds and equities near that time. Intelligent traders will watch from the sideline- like me J Other can jump in the trading ring and thrash around.
Good luck and trade safely.
See you later.