By Gareth Soloway on April 28th, 2010 12:30pm Eastern Time
The markets are floating around the flat line ahead of the Federal Reserve announcement on interest rates at 2:15pm ET. The comments will be significant to the markets because of the problems coming out of Europe and the recent strength in the U.S. Dollar. With major issues spreading in Europe, the dollar has jumped in recent days and has trended higher for months. Interest rates themselves are expected to remain at current levels but the markets should get a surge in volume and a move based off their comments going forward. In general, it is expected that they will continue their relaxed policies towards tightening rates. Whatever is said, watch the PowerShares DB US Dollar Index Bullish (NYSE:UUP). Wall Street expects the markets to head in the opposite direction of the dollar following the Federal Reserve Policy Statement.
To look for the stocks lagging in this market, one need not look further than Apple Inc. (NASDAQ:AAPL). Yesterday was the biggest drop in AAPL stock in months. Today, there is follow through selling. AAPL has jumped recently on the back of the debut of the IPAD and an amazing quarterly report. Another lagging stock would be is Amazon.com, Inc. (NASDAQ:AMZN). Ever since AMZN reported their earnings late last week, the stock has been under pressure.
Lastly, Ford Motor Company (NYSE:F) continues to be under significant pressure. Just three days ago it hit a double top and 5 year high. Yesterday morning they reported earnings. While the earnings were solid, the stock was priced for spectacular earnings. It has fallen off a cliff in the last couple days, dropping from a beautiful double top to the 50 moving average at $12.95. This will be some short term support. Should it break this level, look for the next support to be at $12.30.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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