Thursday’s announcement by the Fed jolted the markets as this is exactly what bulls have been waiting for- more easing. However, this time around, the plan is a little different because the Fed said it would not specify the amounts or time periods for buying back these housing mortgages (where the plan is to lower rates through 2015 and assist the real estate market). It will be a 40 billion dollar quantitative easing plan that is also intended to spur job growth, which stands at over 8%.. still.
FCX, MTRN, FWLT, PHM, & GE are on our strong buy list and we are overweight in these cyclically related stocks.
Adding to shares yesterday in anticipation of the announcement worked out in our favor. We bought some calls on SPY today as we think the market is going higher short term. We are at new highs, and this is exactly what the site has been waiting for. Looking to add on any pullback. Updates and analysis to follow.