According to data captured in Charles Schwab’s most recent Trading Services Sentiment Survey, only 10% of traders say they have a bearish outlook for the next three to six months.
The Fed will garner all of the attention today and may steal the thunder from the Energy Information Administration weekly report. With a neutral supply report perhaps on tap, the market will focus on how the Fed plans to get out of its QE mess.
Andrew Wilkinson is calling for a $5 billion reduction in the monthly bond purchases that are part of QE3 at today’s “penultimate FOMC meeting.” He does point out that a tapering is not the prevailing wisdom.
The dollar traded at almost a five-year high versus the yen as the Federal Reserve begins a two-day meeting that may will result in a reduction of currency-debasing stimulus.