We have the FOMC Statement being released today around 2:15pm EST, where it looks like the Fed will hold interest rates steady. I think what everyone is going to be looking at is whether the Fed sees the inflation threat increasing in the coming months and whether interest rates will go up with it. It’s a simple economic fact boys…you keep rates at 0% long enough, inflation will occur. I’m almost certain too, that when we do start seeing inflation, the Fed won’t tighten interest rates fast enough and as a result stocks will drop like a rock. I’ve seen it before and I know for a fact that inflation is a show-stopper for stocks.

The only other report due out today is Crude Inventories which comes out this morning, which I’d suspect will definitely have an impact on stocks, particular the energy sector (obviously!).

Here is Today’s Trade Setups…

Long Setups: LPHI, LPX, SBIB, BHI


Quick thought – I’m not sure if it is the perma-bear in me or not, but it always seems like I find more appealing short setups then I do long-setups. Perhaps it’s indicative that the market is well-overbought and should not be still going up like it currently is.