The markets are holding on the flat line as they await the Federal Reserve FOMC policy statement and the press conference that will follow later today. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.66, +0.21 (+0.16%). After a monster rally yesterday, the markets are waiting to hear if there will be some sort of QE3 or in the very least some QE2.5. With the economic data of late and the massive problems inside of Europe, the Federal Reserve may be poised to bring some sort of secondary easing plan. This plan will most likely come later this year or early in 2012 though.
Financial stocks are leading the charge today. They were initially weak yesterday following downgrades on Monday, but bounced nicely by the end of the day. Today the banks are the leading sector in the market. Goldman Sachs Group, Inc. (NYSE:GS) is trading higher at $136.82, +0.86 (+0.63%).
Chinese stocks again seem to be the the best performers. These stocks have been hammered due to fraud allegations, short sellers and accounting issues. Many have lost over 75% of their value. Even dead cats bounce though, and stocks like China New Borun Corp (NYSE:BORN), Sino Clean Energy Inc. (NASDAQ:SCEI) and A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) have all rocketed off their recent lows. Until there is more transparency, the smaller Chinese stocks should be utilized and short term trading vehicles, nothing more. Which is the next China stock to pop or drop?