Top of the Range

It's a week after that big reversal and the market has rallied about 3.5%. We are at the same level where sellers took over during the past 3 weeks so some caution is warranted. The Fed is meeting today and tomorrow and everyone seems to expect no action. But, Fed Funds futures have been edging lower and are about 50 bps below the target rate. The market usually leads the Fed so this should make us wonder if Bernanke et al are closer to easing than we think. There are signs the economy is cooling so perhaps we should take that idea seriously. Meanwhile the deals continue to flow as anticipated and there seems to be no end in sight. I believe that fact will be the driving force for the stock market in the months and year(s) ahead.
Through all of this investors need to have a solid plan of attack, well diversified, with plenty of upside potential through the purchase of leading stocks, not last market's leaders. This is our area of expertise. Feel free to contact Geller Capital directly for further information.