Investors Still Sour Over Fed Statements

The market is still feeling a bit of a hangover after the release of the FOMC minutes, where the Fed hinted that "further policy firming" might be needed. I think this is just talk, and that the Fed is likely to remain on the sidelines for quite a while. That should suit investors just fine.

Asain markets were lower in overnight trading, after a nice rally. The dollar is also lower this morning vs. both the euro and the yen. Bond yields are a touch lower, with the 10-year yield at 4.72%. But oil is trading higher, reaching $63. The USO (oil ETF) bounced off its 50-day, but still bears watching.

Research In Motion (RIMM) announced lackluster sales last night, as well as conservative guidance. This, coupled with good old fashioned profit taking, is causing the stock to gap lower by -8%. If it gets back in the $120s, I think it will be a good trading buy again.

The big news this morning was the retail sales reports. These reports were stronger-than-expected almost across the board. Many retailers posted double-digit sales growth. But the retail index as a whole is still trading down. Buy the rumor, sell the news?

I will be back with a retail sales roundup later--

Note: I covered my QQQ trading short this morning, but still have cash to deploy for new buys.