Yesterday’s release of the latest Federal Reserve minutes triggered a big rise in U.S. equity markets. In pretty much two sentences, the report sent the major U.S. indices ticketing upwards. This rise was after earlier concerns about the potential content of that report depressed markets.
Will all of this have an effect on our market today? Most likely it will. After yesterday’s 50 point drop and the close to 250 point drop since the index reached 7,400 a few weeks ago there is a pretty decent chance we will see a gain today.
Kung basurero ka, you can pretty much ignore the FED. Our third liners operate with their own set of rules anyway.
If you are into blue-chips, be prepared for highly volatile days. There will be another FED report later this month and I am sure the expectations surrounding that one will also send markets up and down. So ngayon pa lang, be prepared.
If you are making money, consider taking profits. If you have a large cash position, identify your entry AND exit points for your target issues.
Kung “long-term” ka, do a quick check on your issue’s fundamentals / technicals, see if your long-term projections are still valid and go back to your life.
In all, the FED’s actions will almost always send ripples or shockwaves to our markets and it is up to us to learn how to ride them out.