FED Speaks, Equities and Gold get drilled – By Todd Horwitz, Bubba Trading.

 


Wednesday the FED made their decision on interest rates, they cut .25 bps which was already priced into the markets. The reaction was the typical sell on the news, equities and metals got hammered. This now brings the questions, Are the rallies in metals and equities over?

Because we can’t predict markets, Wednesday’s action was almost predictable. Other than the big sell off in equities and metals there was no real technical damage done to the markets and they should probably resume the current trends which is higher for both.

Although gold and silver both broke hard the last two days they are both still in up trends and should continue there moves higher. The key levels to watch are 1410 in December gold and 16.00 in September silver. As long as those levels hold, we are buyers and looking for the rally to continue.

Wednesday’s action appears to be just a blip on the radar screen. There are no guarantees that the rally will resume but based on all the data we have there is no reason to believe it won’t.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.