After another wave of major corporate earnings reports – especially after Apple announced at the end of Tuesday's gains, investors have to face the full Fed.
The Fed also has to face with caution volatile financial markets, as investors use the wording of the Fed chairman Xi Baoer more difficult. On Wednesday, the focus of investors will be a press conference after the meeting at the end of the Fed's policy statement after a meeting with Bauer.
Miller Tabak analyst Mali (Matt Maley) warned that if the Fed's dovish stance has changed, can make the disappointment of the stock market rally. The growth of high-tech companies, became another short board.
Mali said that the Fed will evaluate the part of the data encouraging people – such as the growth rate in the first quarter and at the end of last year, the rally in the stock market caused by the reversal of the central bank's policy.
"As the stock market has recovered, the central bank can no longer be substantially biased toward the pigeons," he said. "This does not mean that the stock market will be like in the fourth quarter, as a significant pullback, but the market is overbought technical condition."
According to him, investors need to look at the Chinese stock market. China's central bank has said it will not contribute to further relax the policy, the results of the past few days, the Chinese stock market fell by 5%. This year, Shanghai Composite index rose by 23 per cent in 2019 is still the best performing global stock markets, but analysts say that the highest point of the Shanghai stock market has left.
US stocks have risen sharply in recent years, Mali said that he does not think that investors have flocked to the approach, resulting in the stock market unexpectedly rose and became unstable. But a sharp rise on Wall Street this year, still nervous.
Its high performance technology stocks, and more worried. Especially semiconductor shares, even if the news is bad, but its stock price even higher. After warning came after Intel, Samsung announced the first quarter earnings on Tuesday significantly reduced by 57%.
Mali said: "This is something strange when a stock that bullish reaction to bad news is usually a good sign, but there are many companies to publish negative talk in the next few quarters, that people should be vigilant"
He suggested that investors from the recent rally in stocks to lock in profits, as well as overweight defensive stocks, hedge. He also noted that the holding of the money, but also can prevent the stock market back.
«Whipsaw stock market might fall back as the end of December last year, but it also provides an opportunity," he said, and said that if the stock market retreated by 5-7%, can give investors greater input capabilities.