Major averages fell yesterday on lower volume ahead of the Federal Reserve's 2 day meeting. Futures markets put the odds at just 2% of a rate hike when the Fed concludes its two-day meeting at 2 PM ET Wednesday, and at just 20% in June. Other major news events on deck this week include AAPL's earnings report after the close today as well as those of a number of big-stock NASDAQ names like FB and AMZN later in the week, then on Thursday, the advanced estimate for Q1 GDP and the Bank of Japan policy decision.
The Bank of Japan has implied it may be unable to continue increasing QE going forward. Negative rates are having some negative consequences as expected, and the yen's recent drop against the dollar is also cause for concern.
With the sharp slowdown in projected U.S. GDP, the advanced estimate for Q1 on Thursday may also present issues for the market. Thus there is plenty to upset the apple-cart so to speak, starting with today's APPL earnings announcement.
While these are news events, they have the ability to impact a market that has shown a tendency to be news-oriented, so investors should stay alert and ready to act based on the market's reaction and the objective, resulting technical evidence.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.