What a Powell Nomination Means for Stocks

President Biden’s made his pick. Jerome Powell is to remain Fed chairman for another term.

November 22, 2021 1:08PM Let This Find Your Next Trade - FAST The hardest part of trading is analyzing all the charts to find your next trade. It can take hours... OR You can simply activate my unusual "trading engine" on your computer, tablet, or smartphone... ...and let it find your next trade in just a few seconds. PLUS, risk management is built-in to the trading rules, so you don't need to think too much. Go here to try it out... What a Powell Nomination Means for Stocks President Biden’s made his pick. Jerome Powell is to remain Fed chairman for another term. Bulls breathed a sigh of relief this morning as stocks rallied strongly in response. “It appears markets are reacting positively to the continuity signal. Continuity will be key during this potentially tricky phase of the recovery where inflation is elevated and sticky, demand growth is strong but cooling and capital and labor supply is gradually rebounding,” explained Oxford Economics chief US economist Greg Daco. By noon, however, the market gave up most of its initial gains. Tech shares were down while Dow components enjoyed a moderate lift. The S&P traded for a small gain. It seems investors sobered up after stocks temporarily touched new highs. Last Friday was the November options expiration (OpEx) date. This year, there have been plenty of post-OpEx rallies that followed pre-OpEx dips. Up until September, it was a fairly reliable trade – sell the week of OpEx, then buy immediately after. Last month, though, there was no pre-OpEx correction. Stocks simply surged through expiration without looking back. September saw a steep selloff prior to expiration, but no rally emerged to close out the month. (...continued below...) "Crypto Nerd": Don't Buy Bitcoin - Buy THIS Instead This reclusive "crypto nerd" known for his uncanny ability to spot the hottest growth trends in crypto recently revealed the name and ticker symbol of one of his top buys for the next 12 months. It's part of a new "next gen" crypto wave that he believes is much more important - and potentially much more lucrative than Bitcoin. Go here for all the details. Now, though, the S&P may be returning to its old ways. Stocks closed below the November high last week. Today, the market rallied post-OpEx. But the enthusiasm quickly wore off as hawkish sentiment came crawling back. With Powell still in charge, at least one rate hike should occur sometime next year. Short-term, Powell retaining his seat provides stability, which the market initially loved. Longer-term bulls, on the other hand, were hoping that Lael “no hikes” Brainard would get the nod instead. “I think this was largely expected by markets. Certainly, there were some conversations in markets over the last couple of weeks about Brainard potentially being elevated to the Fed chair position. But by and large, the expectation was for consistency,” said Erin Browne, Pimco managing director and portfolio manager. “You may see a little bit of a rally on the back of this with the expectation that policy is going to remain in place and intact, and everything that’s been articulated already by the Fed is likely to continue into 2022 and beyond.” (...continued below...) Activation Link For indra21poetra@gmail.com Have you tried my "trading engine" yet? Our members love it because it makes trading so easy... ...and we're ready for another group of people to test it out immediately. You just pull out your favorite device... activate this revolutionary "trading engine"... and let it find your next trade. Yes, I would be skeptical, too, but I show you the results from our tests (and the formula) in my "tell all" video. Go here for all the details... Compared to Powell, Brainard is an “uber-dove.” It’s hard to imagine after almost two years of unprecedented quantitative easing (QE) under Powell’s guidance, but a Brainard nomination would have undoubtedly been a moderate-to-long-term bullish impulse. Inflation expectations would’ve risen, too. But in today’s market, high inflation doesn’t really matter. Not when taken at face value, at least. Investors are likely approaching a scenario where stocks continuously rise (nominally) to keep pace with inflation. But little-to-no real gains will be made. We’re not there just yet because stocks are rising so quickly. It’s coming, though, and it could happen fast should demand wane further and true stagflation take hold in 2022. That trend may intensify in the future now that Brainard is clearly next in line for Fed chair. That means when Powell’s second term is done, Brainard’s in. Probably around the same time the US economy is begging for low rates once more. ** ANNOUNCEMENT ** I have an announcement to make. Watch this video before making your next trade... This one could potentially be a game changer. Go here for all the details. You are receiving this email because you opted in at one of the Profits Run websites. Our office hours are Monday - Friday 9AM - 5PM EST 28339 Beck Rd Suite F6, Wixom, MI 48393 Phone: (248) 733-4343 / Email: support@profitsrun.com Privacy Policy | Terms & Conditions | Disclaimer Copyright © Profits Run, Inc. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher. Profits Run is a research publishing firm. The information we publish is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation - we are not financial advisors nor do we give personalized advice. 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