Hey,
This week, every trader on the planet is paying attention to one thing above all — the Federal Reserve's monthly policy meeting.
That said, in recent years, most traders haven't cared about these Fed meetings.
When interest rates were near zero for so long, there was little to learn from the Fed's monthly updates.
But now, as inflation surges and an economic recession looms, the Fed's actions are top-of-mind for traders.
So, what's the most likely outcome?
The general consensus is that the Fed will raise interest rates another 75 basis points this week. If this occurs, I don't think it'll be a big surprise to anyone who's been paying attention.
At this point, the more important thing to consider is the tone of Chairman Jerome Powell's speech about the economy…
If he even hints at a pivot toward a more dovish economic policy, the market could potentially rip.
On the other hand, if the Fed hikes this week with no talk of a pivot … look out below.
In the meantime, I'm carefully considering my options (excuse the pun), waiting for a clear price direction before making any big plays.
With that in mind, let's go over the most important factors to consider as we trade this monumental week for the stock market.
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