Sending The Fed Into Summer

While it is true that there is a scheduled FOMC for late-July, in general the June Fed Meeting (with the announcement at 2pm EST later today) sets the monetary policy tone for markets throughout the summer until Jackson Hole at the end of summer. 

As The Fed presumably takes a few victory laps today for the recovery in risk assets, liquidity in markets, and apparent recovery in jobs since the grim days of March, equities are mixed and drifting as we speak. TSLA, one of the more coiled technical bases we flagged for Members headed into this week, is squeezing above $1000--It is hard to fathom that just in March we had famed short-seller Jim Chanos on CNBC feeling a sense of redemption after TSLA fell from around $900 back into the $300s.

Needless to say, these are unique times and unique markets we are living through. 

Regarding fresh ideas, I am not expecting much before the FOMC. With the Nasdaq pushing higher yet, even if shorts continue to struggle I see diminishing risk/reward setups on the long side. 

Perhaps of more interest will be the reaction by gold later today. The yellow metal has been consolidating its March rally for a while now, and if The Fed indicates it has no plans to take away any of the variety of punch bowls it has sitting out for markets I would think a new leg higher can materialize sooner than later.