The Fed did what was expected on Wednesday and did not make any major changes to its policy. The policy statement notes, "Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses."
The policy statement also notes that the Fed will remain uber-dovish. The Fed notes that coronavirus will continue to weigh on that economy, both long and short term, however "over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses."
While those with a bearish bent often look for a "sell the news" reaction to the Fed, that generally does not occur, but we have to watch to see if such action develops. So far, the reaction is quite mild with the indexes barely changed since the news hit.
Fed Reserve Chairman Jerome Powell will hold a news conference Wednesday afternoon.
I'm mostly just holding positions at this time and have not made any big moves. One name on my radar is Sorrento Therapeutics (SRNE) , which is turning up off recent lows. It is a controversial name and probably has some short squeeze fuel to drive it.
There was some wild IPO trading in Snowflake (SNOW) and JFrog (FROG) that is the sort of thing that makes you wonder if the market is overheated, but they were driven in a large part simply by curiosity -- more than any conviction that the valuations made sense.
This market remains quite healthy and we'll see if Jerome Powell can shake things up a little.
