Every time investors think the Fed is going to be one-and-done, they rally the market 100 points. Yesterday was no exception. The potential for an additional 25 basis points in June faded from over 50 to about 28. That gave the market the added juice it needed to penetrate serious overhead supply.
More Quotes from Marc Pado:
The market is down as crude prices are up because of the approaching hurricane, which could hurt production, and then tomorrow's FOMC meeting is also going to be important, ... I think the Fed will do 25 basis points but then the commentary will be importMarc Pado
While the market was still moving higher, the internals leave much to be desired. The action is not negative, just not impressive, which leads me to believe that we are in an up-trending trading range.
Marc Pado
Net-net, there's probably plenty of oil in the market. OPEC left production quotas, so that's a plus for the market this morning.
Marc Pado
The market had been ignoring the recent run in crude, brushing it off as temporary emotional buying as a hedge against economic sanctions against Iran. Whatever the reason, oil is back up against all-time highs, and that was making the markets nervous.
Marc Pado
Any time you remove uncertainty, it's good news for the market. Having raised the question, the market has shifted its attention to Greenspan from earnings.
Marc Pado
There is no question that the tone has turned more positive. We haven't broken out yet, but the markets are poised. Now all we need is for the news to hit the ball out of the park, and it needs to be perfect. Crude is still high and the yield curve is still flat, but the market's focus is on other things right now.
Marc Pado
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