- New Trades -

Editor's Note:

(March 15, 2015)

This week could be pivotal for the U.S. stock market. The FOMC meeting is Wednesday. The Fed's statement and Yellen's press conference on Wednesday afternoon could generate a lot of volatility.

Considering how much anxiety the market has already seen ahead of this meeting I'm reluctant to add new trades tonight. After a three-week decline the S&P 500 might rally if the Fed remains dovish.

I am encouraged by the relative strength in the small cap Russell 2000 index. This might suggest there is still a bullish undercurrent to the market.

No new trades tonight. I've added COH and EXPD as new watch list candidates.

I would keep a close eye on the U.S. dollar and euro. The dollar's move is starting to turn parabolic and a trend like that doesn't last very long. What happens to stocks if the dollar suddenly reverses (on a short-term basis, long-term it's probably still headed higher).

Chart of the U.S. dollar & the Euro