09:20am  ~ After some moves up in the main U.S. stock market we are now in a holding pattern waiting for the FOMC economic projections and statement kicking off this evening at 7pm (UK time)  You could see traders going into limp mode last night, the S&P500 began trading in a narrow range soon after I came out of my long trade yesterday afternoon. The big news everyone is waiting for is whether the Fed is going to carry on with its asset purchasing or scale back, and if it does reign in its spending, what’s the amount going to be and how is going to affect the largest economy in the world. As the U.S. is the biggest economy in the world any hint of a cut in government spending will have repercussions around the globe, so you’ll probably see the markets go quiet this afternoon and then once the news is digested by traders around the globe, most markets will shoot off in one direction or another.

Onto commodities and Gold added to its recent loss in value again yesterday, going below the crucial $1300 support level although it has picked up in Asian trading early this morning. The price of WTI *  is still tumbling downwards as the Libyan Government looks like resolving the strike threat by oil workers which would have a small effect on supplies plus the Syrian problem looks less likely every day to erupt inot a full-blown conflict between Russian and the U.S.

* I was asked twice yesterday what WTI stands for – it’s West Texas Intermediate also known as Texas light sweet, and is a grade of crude oil used as a benchmark in oil pricing. This grade is described as light because of its relatively low density, and sweet because of its low sulfur content. It is the underlying commodity of Chicago Mercantile Exchange‘s oil futures contracts. The price of WTI is often referenced in news reports on oil prices, alongside the price of Brent crude from the North Sea. Other important oil markers include the Dubai Crude, Oman Crude, and the OPEC Reference Basket. WTI is lighter and sweeter than Brent, and considerably lighter and sweeter than Dubai or Oman.

On a personal note, I’ve some emails to reply to this morning plus four Skype calls with budding traders, but I also have a cycle ride to fit in and also I’m going up to the cottage in Suffolk for a few days ahead of trip to Spain for a week. While I’m here in the study this morning I shall keep half an eye out for any trade opportunities, but I’m not hopeful as the markets are waiting for the FOMC statement later this evening.

20:10pm  ~ Just turned on my computer here at the cottage and seen the result of tonight’s Fed statement by Bernanke at 7pm (UK time)  As I predicted earlier, the market hovered around and then shot off as the Fed chairman began speaking. It was broadly good news so we had a large spike in the U.S. stock market. I will explain more in the morning, but now it’s down to the Lord Nelson for a swift pint.