Yesterday’s Fed meeting saw the monetary magicians roll up their sleeves and get at least a little more serious about wrangling the inflation monster. They boosted rates by 75 basis points, the most aggressive hike since 1994. And another three-quarters of a percentage hike is on the table for July’s meeting.
Stocks initially rallied, bringing hopes of relief to a beaten-down market. Traders departed their terminals yesterday in high spirits that a bounce could be upon us. Then they awoke to a bleep show. Equities are back to puking, and buyers have fled the premises.
The Russell 2000 is down 4%, the S&P 500 is down 3%, and energy, the one area holding up, is down 5%. Keep your wits about you. There be vicious bears on the loose.
Video of the Day: Jedi Options – How to Select Your Covered Calls
Chart of the Day: Energy Sector ($XLE)
Oil and energy are receiving their comeuppance today. XLE breached the 50-day and looks uglier than at any time this year. Is this a buying opportunity in disguise or the beginning of the end?
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