The Bernank Holds All of the Cards Today

This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 4.50 points to 1379.00 per contract. The market moving institutions are all waiting to hear what the Federal Reserve Bank is going to say this afternoon. The central bank concludes a two day meeting this afternoon, they will release their interest rate policy statement and another statement about the economy. Many investors are eagerly waiting another announcement regarding more quantitative easing or as it is known QE-3. If the Federal Reserve fails to deliver a strong message of QE-3 many investors will be disappointed. The announcement is expected to be released at 2:15 pm EST, therefore the markets could be a little on the quiet side until then.

Should the Federal Reserve Chairman Ben Bernanke announce another quantitative easing program traders should watch for a rise in gold and commodity prices. Some equities that could benefit from more easy money by the central bank would be SPDR Gold Trust (ETF) (NYSEARCA:GLD),iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL), iShares Silver Trust (ETF) (NYSEARCA:SLV), and the Market Vectors ETF Trust (NYSEARCA:GDX). These same inflationary equities could come under some pressure if the Federal Reserve does not take action. It is safe to say that all eyes will be on the central bank this afternoon.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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