So we are 15-30 minutes away from the FOMC rate decision announcement. The day has been pretty tame so far–but that will change. We will see the S&P500 shoot straight up (or down) likely followed by a move in the other direction as the algo’s run the market for some minutes. Then we will wait for Jay Powell to hold his presser at 1:30 (central) and this will no doubt move markets depending on his choice of wording in his statement and while answering questions.
Banking preferreds are mixed today with losses outnumbering gainers, but the losses are not massive like we have seen in some recent days. 1 issue of note is the PacWest fixed rate reset 7.75% (PACWP) which is trading off again and now is at $12.00–this would be a very dangerous buy and not something I would mess with–a total crap shoot as whether the bank will survive.
So buckle up for a few minutes of wild machine trading–we’ll get this behind us and then await employment numbers on Friday.