Karpel’s Corner: Amid mixed signals from the market, we’re on a Fed watch

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The market continues to trade mixed and the Mid- and Small Caps ($MDY and $IWM) continue to lead to the downside.

With the Discretionary ($XLY) and Industrial ($XLI) also lagging, we’re not picking up a clear bullish bias–especially with the Fed ready to talk today.

Finance ($XLF) has started to form corrective action to the upside, so I want to watch this sector closely into the Fed announcement.

Turning to Treasuries ($TLT), the long end of the curve continues to move to the upside in PRICE and not Yield, which has been the story the past few weeks. One would expect the opposite.

Right now, Bond Bears are licking their chops, at the ready to take some new short positions at these lofty price levels.

For now, we are on Fed Watch.

See you next time at the Corner!