Yeah, that got memory-holed real quick.
Now, we’ve got Federal Reserve Chairman Jerome Powell, who was just given a second term, saying that he can’t guarantee a “soft landing” for the economy.
A “soft landing” means hitting about 2% inflation without destroying the jobs market.
And as Chairman Powell himself said, the Fed doesn’t have control over this.
Russia’s military progress, China’s “zero COVID” policy, European wrangling over oil embargos… all of these things are going to be critical to determining the pace of the global economic recovery.
Assuming there is a recovery. As “Mr. X.” explains today, geopolitical factors are making the possibility of a serious recession far more likely, regardless of what the Fed does or does not do.
Yet we’re in this place now because of Fed policy.
The refusal to confront inflation head on early led to a nightmare scenario where the Fed is committed to interest rate hikes even though we can’t take economic growth for granted.
Speed is critical in a bear market. You can’t afford to just buy and forget it. New tactics are required.
I’m not just talking about using shorts, but spotting the stocks that are going to be rocketing upward when retail investors sense that they’re “at the dip…”
Even AMC and GameStop (GME) were both up more than 10% yesterday. It could have been any day from the height of the meme trading boom.
Regardless of the larger circumstances, we can help you see the patterns that emerge in every kind of market and spot the trading opportunities that pop up every single day.
Don’t miss Chris Hood’s new episode of “Hood Talk” below.
He talks about some of these issues, shows what you can do, and drops some knowledge you’ll want in a market this volatile.
Last day of the week.
Whether you’re using shorts or going long, always remain on the attack.
Chris answers questions that everyone is asking.
Is this the bottom of the pullback?How low can the market drop?
What key levels are critical to determine whether to go short or go long?
Chances are if you’ve been trading you’ve taken some losses recently.
Watch this strategy guide on how to short properly using moving averages, resistance and support zones, and your Option Coach’s proprietary tools.
WORD ON THE STREET
Fed Head Admits His Dread
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Jerome Powell Confirmed For Second Term – In an overwhelming vote of 80-19, the Senate gave Federal Reserve Chairman Jerome Powell another term at the top job at the Fed. However, Powell is not sounding confident. He said achieving a “soft landing,” getting back to 2% inflation while maintaining a strong jobs market, will be “quite challenging.” Jerome Powell also said that many factors lie out of the Fed’s control, especially geopolitical events. Maybe they should just put me in charge.
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Elon Says Twitter Takeover About “The Future Of Civilization” – Elon Musk doesn’t just want self-driving electric cars and cities on Mars. He wants to save civilization. “My strong intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization,” he said. “This is not a way to make money,” he also claimed. That’s all very well, but shareholders may think differently.
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Biden Musing Lifting Trump’s Tariffs – President Joe Biden is reportedly considering lifting tariffs on China imposed by President Donald Trump. While this might ease inflation, the president’s biggest political problem, it also opens up a Republican line of attack. Hillbilly Elegy author and Senate candidate J.D. Vance (R-OH) accused the Biden Administration of administering the “managed decline” of the United States with weak trade policies. Look for other Republicans to take up the call as the midterms near.
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Rand Paul Stalls $40 Billion Ukraine Bill – Republican Senator Rand Paul, son of libertarian icon and former Congressman Ron Paul, single handedly stopped the swift passage of a $40 billion aid package for Ukraine. The bill’s eventual passage is not in doubt, but the delay could prove crucial as the Russian army continues to pressure Ukrainian forces trying to maintain their position in the disputed Donbas region.
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HOT SPOTS: What’s Going on in Geopolitics
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Army Refits For Alaska Fight – Army Secretary Christine Wormuth is debating whether to replace a Stryker Brigade with an infantry unit that might be able to respond more quickly to threats. The Army is also prioritizing cold-weather training and moving additional forces to confront a possible artic threat from Russia and China.
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China Scared Of 90-Year-Old Cardinal – Chinese authorities arrested a Catholic cardinal using a new national security law to crush dissent. The justification for arresting 90-year-old Cardinal Joseph Zen was “colluding with foreign forces.” No word on who those forces might be. The Vatican?
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Russia Says Finnish Membership In NATO A Threat – Finland’s president and prime minister made a joint announcement that the Nordic nation is pursuing membership in NATO “without delay.” Public support for joining NATO increased from about 30% to an overwhelming 76% since the Russian invasion of Ukraine. Russia has threatened “retaliatory steps.”
CUTTING EDGE: What‘s Happening In Tech
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Robinhood Takes From The Rich To Give To The Poor (Shareholders) – Sam Bankman-Fried, CEO of FTX, revealed a 7.6% stake in online brokerage Robinhood in a filing with the SEC. HOOD has suffered a catastrophic decline over the last year, falling from over $70 to less than $8. However, after news broke about this investment, HOOD rallied over 23% in after-hours trading.
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Luna Crypto Now Practically Worthless – Because the stablecoin TerraUSD has failed to maintain its $1.00 value, the once high flying cryptocurrency Luna is now essentially worthless. One week ago, it was about $85; as of this writing, it was less than a nickel. The disaster has triggered a collapse in the entire cryptocurrency market, wiping out hundreds of millions of market cap in a matter of days.
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Terrifying Black Hole At The Center Of The Galaxy Revealed – Using cooperative research called the “Event Horizon Telescope (EHT) Collaboration,” scientists have used images from radio telescopes to reveal the object at the center of our galaxy. It’s a black hole known as Sagittarius A*, something theorized for a long time. We had no visual evidence of its existence of until now. Luckily, the black hole is about 27,000 light-years away from Earth.
(EHT Collaboration, used under CC by 4.0 License)
FOR YOUR CONSIDERATION
“The Fed’s challenge isn’t so much containing runaway growth but preventing stagflation.”
Buy gold coins. Buy internet money. Store 20 years of survival food in the basement. Make sure you have a generator, and drinking water, and…
All right, there’s a lot of apocalyptic rhetoric out there about the dollar and a so-called “collapse.” Yet in truth, the dollar is only growing stronger. The same can’t be said about the American economy.
“Mr. X,” like Fed Chairman Jerome Powell, sees the threat of a recession as real. And he gives the same reasons why – it can be unleashed by factors that no American policymaker or oligarch, no matter how rich or powerful, can possibly control.
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The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information