I posted yesterday morning that the trade was to go LONG calls. I was away from the screens and at a funeral during the FOMC announcement so I did not want to trade it.
The 25 basis point rise is not the news – The reaction is the news is what matters.
Japan surged overnight and gold continues this morning.
With oil at $74, I am not a believer in the stock rally.
The move of interest to me is Gold. If it can hold $600, the next rally is set to start. Gold rallying on another rate hike tells me that we are getting close to the end and the market will factor that in immediately. If the stage is set for no further rate hikes or rate cuts in the fall, Gold should easily surpass $700.