Well, the FED does it again. The SPY is looking at a sizable gap up this morning, thanks to some choice words out of FED Chairwoman Yellen. Subsequently, most sectors are looking at early strength in complete contrast to what we have seen over the past week and a half. The Financial Sector is off to a great start, and really could hold much of the day’s strength. $GS, $BAC and $C have led the sector at large and, as it stands right now, are set to gap towards their highs over the last two weeks.
High Flyers are clearly over exaggerating this early action. This can be attributed to the lack of strength in recent sessions, combined with the early sell off we saw two weeks ago. While the Social Media sector has been hot lately, keep a close eye on $AMZN $GOOG and $NFLX. The group has lagged behind the rest of the sector, and are clearly set to take back a good portion of their recent losses.
Over all, today is dangerous. Typically, when we see this type of strength early it comes with a slow, lackluster, day. With that said, the only way to really protect yourself today is going to come by way of speed. Be quick in and out of positions, while maintaining an eye on market strength. If things don’t look right, they aren’t, but at least you won’t be stuck in a sizable position that you cannot quickly exit.
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