(Kitco News) - The Federal Reserve may not need to be cutting rates in today's market environment, said Peter Tuchman, NYSE trader of Quattro M Securities.
"The market is trading at record highs. Does it need a stimulus now? So, basically, economic data that's coming out right now doesn't seem like it should be pointing in that direction. It seems that for the first time in many, many years, it's a decision based on forward looking sentiment," Tuchman told Kitco News.
Tuchman said that although stocks are pared down slightly on Monday's session, he doesn't think traders are being "cautious" ahead of the Fed.
"I don't look at this as cautious trading. So the market is at 27,260, the S&P is above 3,000. These are big levels, we've been able to support these levels for the last couple of weeks with whatever anxiety there is about the Fed, about earnings, and whatever headwinds we're looking at," he said.
On IPOs, Tuchman said that they could be a useful instrument for some investors.
"If you are questioning whether to buy the market at these high valuations, maybe you'd want to put your interest into IPOs. It's just another instrument for people to play with," he said.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.