This morning, the S&P 500 Index e-mini futures (ES-U2) are trading lower by 2.50 points to 1437.00 per contract. The small move lower in the futures market comes as traders eagerly await the comments from the Federal Reserve Chairman Ben Bernanke. Many economists and investors are expecting another round of quantitative easing (easy money) called QE-3 to be announced. While the stock market may have some of this news already baked into the cake; the size of the quantitative easing could push the markets higher if the central bank implements it. The major stock indexes will probably trade sideways until the statement is released around the noon hour. Once the statement by the central bank has been made public the markets should see a spike in volume.
Some equities that could react positive to another quantitative easing include Deutsche Bank AG DB Gold Double Long ETN (NYSEARCA:DGP), ProShares Ultra Silver (ETF) (NYSEARCA:AGQ), iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL), Sprott Physical Gold Trust (NYSEARCA:PHYS), and almost everything commodity related. These same equities could also come under some selling pressure should the Federal Reserve surprise the markets and not implement another QE-3.
Below you may find the video.