Before the Open

The crisis in the Middle East is reaching a “new phase.”  This is something that should help the beaten down energy sector to outperform over the rest of this year.

For the first time in a very long-time, there is a question about what the Fed is going to do with their rate announcement on the eve of their meeting.  This could create more volatility than usual…once the decision (and guidance) is announced.

"One important tech stock spent much of the second half of the summer underperforming.  However, it’s recent action might be telling us that it will outperform quite nicely in the weeks and months ahead."

The narrative surrounding how big this week’s short-term rate cut will be…has suddenly changed significantly.  This might not be enough to soften the markets’ reactions to the upcoming announcement.

We’re still concerned that the chip stocks continue to lag (which they did again yesterday).  So, although the Fed rate decision next week will be key, the action in this group will still be extremely important going forward.  This group’s performance needs to improve.