The Fed AfterMath

The Fed as expected did not raise rates; the market celebrated this event by gaining 1% on the day. As a matter of fact, mostly everything rallied including oil, metals, and bonds.  Going forward this combination of gaining 1% and oil, metals, and bonds rallying after a Fed meeting has not been kind for future returns going out 10-20 days as you can see on the chart below.  The initial pop was almost always retraced.

via Steve Deppe

With that being said, we still have a decent amount of stocks that are set up properly that one can take advantage of.

XTLY, BREW, MIFI, DXCM, CVLT, Q, IMS, GRUB, TWTR, SAFM, BOFI, MOMO, QTWO, are the stock of interest on the long side if and only if they go through yesterday's high.

No one has said it better than Stockbee; stocks move in momentum bursts that last typically 3-5 days. Within these short term burst, a small cap can go up 8-20% and large-cap $5 to $40.

My opinion and outlook are subject to change as new information comes in.

Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

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The information in this blog post represents my opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.