Here's a stellar trade idea and a hedge
Let's level the playing field… On Tuesday I was feeling pretty prideful about several of my positions, until the clock struck 12. Seems Federal Reserve Governor Lael Brainard said to anticipate quick reductions to the central bank's balance sheet. (Well, gee, "easy money" comes at a cost. I get it.) And there it went… fresh lows on the day to go along with fresh sanctions on Russia. Even Twitter's sector (XLC) with newest board member Elon Musk couldn't keep up, down .88% at the time. Sigh. Then came the reading of the Fed minutes yesterday (Wednesday). It's official, rates are rising… No real news. Ask The Pros regular contributor Garrett Baldwin has great insight on this. But the markets get jittery even though history proves rate hikes like these do not send equities into a bear market. (Big shout out to Roger Scott for clarifying this for us.). Based on the 30-minute chart of the S&P futures below, here's what happened the last few days: During the wee hours of the Asian markets, prices were stable. Once Germany opened around 3:30 AM ET, things went downhill. Coincidence? Na. When the Fed minutes were published at about 14:00 (2 PM ET), the markets were jumpy (indicated by the purple candles which signify volume and rapid movement). | |
Here's another favorite chart of mine you've seen several times: The 30-minute DTI Reference Bars.
Price was moving so nicely (on the left)... until the Fed opened its mouth (far right). This is what you call taking the elevator down. What's next? | |
This just shows that it's challenging to trade on technical and fundamental set ups when elites open their mouths… If you could learn to level the playing field and earn a return in a market that — in the most stellar cases — has seen gains north of 10,000%, would you listen? Keep in mind those gains are astronomical — and happen rarely. But they do happen. Regardless of how you feel about these completely different elites, George Soros and former President Donald Trump listened to Ask The Pros favorite, Don Yocham. That's reason enough for me. Plus, I think Don really knows his stuff. I'm talking about a revolution of money a.k.a. crypto. It has the potential to protect us from inflation, the Fed, other governments, and the pitfalls of a quickly changing world. But there's another pitfall you want to avoid with cryptos… The Ponzi schemes. Don knows all about those too. Register here. I believe this is the most important event to attend this year: Don Yocham's Great Leap Sincerely, Celeste Lindman Ask The Pros | |
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