Yesterday the Federal Reserve released an FOMC statement and pledged to keep interest rates as low as need. They also downgraded their outlook on the economy as they have found what we already know and that is that the economic recovery is losing momentum. Stocks though rallied on that news as traders yesterday focused on low rates seemingly forever and now this morning the futures are down as they are looking at the bad. At 8:30 we’ll get the 2nd quarter GDP numbers so that will be interesting.
I never make too much out of a market reaction after an FOMC statement as they are prone to be fake outs. I want to see what the market does today and tomorrow as more accurate predictors of we’ll see in August.
But the real action continues to be in gold, silver, and mining stocks. I talked about them and more with Jim Goddard of www.howestreet.com in this interview.