The FOMC is tomorrow and with that (usually) comes a lot of volatility. Sometimes we see a potent outside reversal day, other days continuation. Either way, we are likely to move one way or another – dramastically. While I am not bearish (I am currently flat), I don’t believe the risk:reward favors heavy equity exposure into this announcement based on the size of this most recent move higher.
Bonds and Homebuilders are of interest to me tomorrow, both of which have showed relative strength the past couple weeks and are now holding higher. I will be watching these two groups closely before and after the announcement.
Enjoy the video and as always, if you have any questions or comments – let me know!