Author: Chris Hood
And…the long slide down continues for the market.
Wednesday’s FOMC meeting did little to ease the concerns of investors.
After the expected announcement of a 75 basis point hike in interest rates, Powell reiterated his hawkish stance on using further rate increases to control inflation.
The Fed seems committed to this stance even if it wrecks the economy in the near term.
Personally, I despise these idiots.
After all, their injection of several trillion dollars to prop up the market (quantitative easing) got us into the inflationary mess.
Now they plan to fix it by dragging us into a recession?
All I can do is shake my head.
From a trading standpoint, I’m still making money every week. This is because the proprietary tools I’ve designed keep winning regardless of the market direction.
Over the past two years, I’ve only had 5 losing weeks.
And those were minor, insignificant losses.
I apologize if you’ve been losing lots of cash or can’t stand to look at your long-term hold portfolio. I am NOT telling you this to brag.
Instead, I want you to win alongside me in my live trading room.
You’ll get more details from me on how a select few of you will be able to get access to this very soon.
But back to the issue at hand.
I would be cautious about buying heavily into this market right now – we have no idea how far it will pull back.
At the moment (and this could change), I definitely see a near-term price for SPY at 340.00
And a falling market tends to pull down all equities.
Certainly, there are some bullish trends in the energy sector and certain commodities like WEAT and CORN. And the US dollar (UUP) keeps posting new highs.
These are trade ideas, not recommendations. So always filter them through your trading system before you place a trade.
As we saw a couple of weeks ago, there are short bullish rallies in a falling market.
If your indicators can pick these up like mine, then it’s possible to scoop up a nice profit. But remember, the general direction is down.
This means that most of your trades should be bearish.
Bear rallies are countertrend. Like shorting in a bull market, your probability of getting suckered in and robbed is high.
I’ve mentioned this before, but it’s worth repeating.
I know the market is rigged in favor of the institutions. But unfortunately, it’s always been the case, and it isn’t going to change.
Although my indicators and experience keep me safe, I’m concerned about your success.
I spent years getting smacked around by the market and didn’t enjoy it.
If anything I write in these editorials keeps a single trader from losing their hard-earned money, I consider it time well spent.
So stay calm and safe out there.
I’ll let you know immediately when I see things start turning around.