HEAT MAP

These two maps of the financial world came along my news streams this morning.

I wonder what's USA's move in two week's time?

YELLEN YELLEN YELLEN

Just when I was writing about how some CEO/Chairman had balls in my last post, Janet Yellen decided to do the opposite last night.

Cautious optimism is how the financial Twitterverse is terming it.

Here's how I am seeing it, rate hikes would be gradual. Very gradual. Stocks will still push upwards ala 2003 - 2007. Countries are taking turns to ease. Kick the can further down the road. 

How would you trade this tape?

SIDEWAYS

The past 12 months have seen an upswing in local and foreign equity markets. By foreign I mean USA, European and Asian ones.

I suspect markets have been pumped in the last one year for institutions to offload at their convenience. It does not help that ECB has started on their bazooka move of QE. But it is still early days as to whether it is any effective.

I see next week's 18 March FOMC meeting as crucial as market watches look to the FEDs for signals to raise rates. However, I am of view that most people are looking to the wrong thing. Interest rates will rise, it is only a matter of 'when'. To me, it does not matter if it is June or Sep 2015. I am not going to trade the markets in those three months of respite if rates rises only in Sep. 

I will just sit pretty and watch the slide.