This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Midday Update: Who's Afraid of the Big Bad Fed?: StockTwits

Stocks in this article: IWM

NEW YORK (TheStreet) -- Philly Fed President Charles Plosser's hawkish remarks Tuesday were quickly forgotten as the major indices rallied ahead of the release of the Federal Reserve Open Market Committee minutes at 2 p.m. ET.

Investors expected Madame Fed Chair Janet Yellen and other FOMC members to counter Plosser's call for a sooner-than-expected Interest rate hike with dovish statements about disappointing employment and the need for monetary accommodation.

Econ Calendar: "Unending Chorus of Doves": 1130ET: Yellen; 1330: Kockerlakota; 1400: $FED Mins. $SPY http://stks.co/b0a5d ? See It Market (@seeitmarket) May. 21 at 10:34 AM

NY $FED's Dudley: "Many middle-skilled workers displaced during the recession are likely to find that their old jobs will never come back" ? Andrew Kassen (@andrewunknown) May. 21 at 10:08 AM

The S&P 500, Dow and Nasdaq were all in the green Wednesday. However, small-cap stocks fell into the red, causing some on StockTwits.com to doubt the broader rally was sustainable. The iShares Russell 2000  (IWM) was the most discussed ticker on StockTwits by noon. It edged lower by noon.

Bulls you don't want to see $RUT constantly flirting with 1094 with lower highs; very important generational TL support $IWM $SPY $QQQ ? Matt (@BetaBouncer) May. 21 at 12:11 PM

Small-caps are considered a harbinger by many for broader market performance. The theory is that when risk appetites shrink and concern for the greater market environment grows, investors will first choose to sell small-cap stocks that are more dependent on growth. Then they will move into large, established companies more likely to weather an economic slowdown. However, if sentiment continues to deteriorate, investors might move out of stocks altogether.

Others on StockTwits said that, no matter what was said in the FOMC minutes, it would become clear that the Fed would not deviate from scaling back stimulus. And that news could spook investors with Plosser's warning in the back of their minds.

$SPY big money is not stupid enough to buy stawks here into Fed tightening at ATH. this is a naked short setup. ? _flipper_ (@_flipper_) May. 21 at 11:52 AM


At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs