How shall the market react to the FED?

formikatrading said:
...Didn't matter what Powell said.
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So if Powell said we may need a 100 BPS hike next month, you think the markets would still have gone higher? Please. What Powell says in his Q&A has a severe impact on the markets on rate decision day. You know this.
 
Overnight -- I don't care what Powell says, and neither should you. You should pay attention to what the market, itself, is telling you.


Overnight said:
So if Powell said we may need a 100 BPS hike next month, you think the markets would still have gone higher? Please. What Powell says in his Q&A has a severe impact on the markets on rate decision day. You know this.
More...
 
formikatrading said:
Overnight -- I don't care what Powell says, and neither should you. You should pay attention to what the market, itself, is telling you.
More...

Then let me tease your mind...

What are the markets telling you right now, for the next 5 trading days? Was this a short-squeeze on puts and covered-calls which will exhaust itself and the bear will resume, or fresh BTFD because the bottom is in?
 
Overnight said:
Then let me tease your mind...

What are the markets telling you right now, for the next 5 trading days? Was this a short-squeeze on puts and covered-calls which will exhaust itself and the bear will resume, or fresh BTFD because the bottom is in?
More...

Great question. I don't know the answer to that. I still don't have this month figured out. I break down charts by time frames and look for recognizable patterns within longer to shorter term time frames. I CAN tell you that I was extremely confident that we would be up this week and today. Those patterns jumped out at me. They don't always do. And I shared this chart with you before - it's custom momentum indicator -- the one I showed you before that was turning down in early 2020 way before the Covid meltdown. You can see that the momentum (shown by the bottom indicator turning up and yellow from red and declining occurred on Monday this week). There is a lot more to it than that -- but most of my stuff is unique and my own creation. It's not always perfect, but you can find very reliable patterns at times. If you're trading on news and headlines, you're just in reaction mode and have no edge.

upload_2022-5-4_17-44-52.png
 
formikatrading said:
Overnight -- I don't care what Powell says, and neither should you. You should pay attention to what the market, itself, is telling you.
More...

Federal Reserve took the easy way out with that 0.5% interest rate hike and practically, did nothing. Inflation is way higher than the official 8.5%. Stockcharts will provide more answers as to the major trends.
 
How shall the market react to the FED?

-By going up apparently because everything is priced in and the Fed has this vision that with its puny 50-basis point increase in the rate and the private sector labour market not adding more jobs, the inflation will be flattened by next year. LOL
 
M.W. said:
Down and down and down, lol. You apparently trade quarter points.... ;-)
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1/4 pt after 1/4 after ...

Yes I do. And take notice when NQ drops -2.07% -272.50 points.

How are the 0.00001 pipsies going?
! NQ drop.png
 
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