The Fed and Apple Keep Wall Street Traders on their Toes

January 29th, 12:36 pm by David Becker

(eToro Blog) US markets edged higher during the past week, as headlines in Europe were offset by robust earnings and mixed economic data. The technical breakouts on the major indexes, along with upward pointing momentum were met with weekend profit taking.

On Open book, positioning was mixed with slightly more buyers than sellers on the S&P 500 and the Nasdaq 100. Guru trader Anugia, who is up almost 3% for the week and 1270.8% over the past three months, closed his open positions on the S&P 500 Index and the Nasdaq prior to the Federal Reserve decision on interest rates.

This trader has a portfolio that is comprised of 66.9% US indexes, and currently 123 traders who are copying his trades. This all-star also dedicates most of his time toward trading equity indexes with nearly 31.3% of his portfolio focusing on European indexes. With a stellar track record, Anugia is one of the “go to guys” to follow as far as equity index traders are concerned.

Petra09, a Spanish trader, used the upward momentum of the US markets to trade from the long side and reap solid gains. During the past 3 months this index trader is up more than 52%. Mid week he closed a buy position on the Dow Industrials gaining 8.3%. This trader also focuses on the US index markets and has shown robust returns over the past few months as his concentration has leaned toward equity indexes as his trading instrument of choice.

In corporate news, Apple released earnings to much fan fare. The large tech titan beat expectations handily, selling more than 37 million iPhones.

As for monetary policy, the Federal Reserve surprised market participants by changing the data to which it believes interest rates will remain at or close to zero percent. The FOMC announced that rates will remain at current levels to a least the end of 2014. In prior statements, the central bank had promised to keep Federal Funds rates near zero to the middle of 2013.

With the MACD (moving average convergence divergence indicator) showing increasing momentum, for both the Nasdaq and the S&P 500, and recent resistance giving way, traders like Petra09, who are looking to benefit from upward movements should continue to benefit from strong Wall Street sentiment, provided news out of Europe does not sabotage investors confidence.