Market Rally Ahead of Fed

The markets are in rally mode today as positive comments from the Federal Reserve tomorrow afternoon are expected. It appears the markets may even be hoping for some QE3 news. Ben Bernanke and the rest of the Federal Reserve are meeting to discuss policy. They will announce it tomorrow. The SPDR S&P 500 ETF (NYSE:SPY) traded as high as $129.55, +1.85 (+1.45%). This was a major gain for a market that has seen seven weeks of selling.

The Dollar is also taking a large hit today. A down Dollar means a strong up market. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%) This weakness in the Dollar is partially related to possible further easing measures by the Federal Reserve but also an aid package to Greece that may be given as early as tomorrow. The first step tonight is a vote of confidence for the government. Assuming that goes well, new austerity measures will be voted on. The market is anticipating a royal flush of approval. Should something happen, the markets could freak out. It is unlikely but not impossible.

The rally today is broad based. Financial stocks were weak early but have roared back and are now matching the gains of other stocks. JPMorgan Chase & Co. (NYSE:JPM) is trading at $41.00, +0.52 (+1.28%). Technology has taken charge with the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) trading at $55.08, +1.01 (+1.88%).

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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