Fed up

Chairman Powell announces the inevitable

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AUGUST 23, 2024       Editor’s Note: I’m gonna talk to you today about why the Fed put a bee in my bonnet. But if you want one great trade that still ignores the Fed but allows you to capitalize on potential volatility in EITHER direction, you really should check out Geof Smith’s two-ticker trade. It’s pretty powerful!  Hey y’all, There’s a moment in the movie Monty Python and the Holy Grail that I think about often. They’re narrating a series of events, and after each event they describe, the narrator says “and there was much rejoicing.” Then, the animated characters on screen give a group of half-hearted, perfunctory, lifeless cheers to show how happy they are. I think about that a lot when I feel like we hear very obvious news but people are supposed to pretend to be excited about it. Why do I mention that today?  Because today, at his much anticipated and entirely predictable speech in Jackson Hole, Federal Reserve Chairman Jerome Powell finally announced that “the time has come” for the central bank to lower the interest rates. …  And there was much rejoicing…    Stocks have had a lukewarm reaction to the news, probably because this was already baked into the cake entirely. But I don’t think these rate cuts have been baked into the cake for a week or two… or even a month… If you think back to the beginning of the year, wasn’t this always entirely predictable?  The Federal Reserve would play around with the idea of lowering rates until around the election, when political pressures would become serious enough that they had to act. And now they are acting. It’s not like the economy is suddenly “fixed.” In fact, in one of the most shocking and under-reported stories in recent memory, the Labor Department announced this week that they had overestimated job growth by more than 800,000 this year!    Must be nice to get to make up your own figures to make yourself sound better, then revise them later and not get called on it or face any serious consequences.  Don’t try that at your day job, folks. All of this has me fed up with the Fed. And as I’ve said before, it’s not really that I hate the Fed or think Jerome Powell is some kind of puppeteer running our lives. I think it’s a lot less sinister and a lot more banal than that. But the power we give these folks in the markets is absolutely crazy. And the financial media has gotten out of control. If Jerome Powell sneezes too hard, they’ll report the next stock market crash is just around the corner.  It’s all a game we play to keep things “interesting…” When the real trading is usually done by ignoring the headlines and focusing on what really matters. There might be a few great fundamentals traders out there, but I’m so proud of our team here at ProsperityPub and their pretty much unanimous focus on technicals.  Sure, they’re aware of the Fed decision, same as anyone, but it’s not going to change their approach to trading.  And that’s where we should all be!  Speaking of which, if you didn’t catch it today, I got to moderate Jack Carter’s 1pm briefing about his 10 AM Income Project, and in the candid Q&A discussion we had after he was done, he gave a great explanation of why folks shouldn’t care at all about what Powell has to say. It was a lot of fun, and not for the faint of heart. If you weren’t there live, I’ll share that over on the ProsperityPub Telegram as soon as I can get my hands on the recording (you can join us here — it’s FREE!)  Or you can check back here Monday. I’ll probably still be talking about it. As for now, put your Powell blinders on and enjoy your weekend. Hope the markets have been your friend this week. To your prosperity, Stephen Ground Editor-in-Chief, ProsperityPub

AUGUST 23, 2024 Editor’s Note: I’m gonna talk to you today about why the Fed put a bee in my bonnet. But if you want one great trade that still ignores the Fed but allows you to capitalize on potential volatility in EITHER direction, you really should check out Geof Smith’s two-ticker trade. It’s pretty powerful!    Hey y’all,   There’s a moment in the movie Monty Python and the Holy Grail that I think about often.   They’re narrating a series of events, and after each event they describe, the narrator says “and there was much rejoicing.” Then, the animated characters on screen give a group of half-hearted, perfunctory, lifeless cheers to show how happy they are.   I think about that a lot when I feel like we hear very obvious news but people are supposed to pretend to be excited about it.   Why do I mention that today?    Because today, at his much anticipated and entirely predictable speech in Jackson Hole, Federal Reserve Chairman Jerome Powell finally announced that “the time has come” for the central bank to lower the interest rates.   …    And there was much rejoicing…    Stocks have had a lukewarm reaction to the news, probably because this was already baked into the cake entirely.   But I don’t think these rate cuts have been baked into the cake for a week or two… or even a month…   If you think back to the beginning of the year, wasn’t this always entirely predictable?    The Federal Reserve would play around with the idea of lowering rates until around the election, when political pressures would become serious enough that they had to act. And now they are acting.   It’s not like the economy is suddenly “fixed.”   In fact, in one of the most shocking and under-reported stories in recent memory, the Labor Department announced this week that they had overestimated job growth by more than 800,000 this year!    Must be nice to get to make up your own figures to make yourself sound better, then revise them later and not get called on it or face any serious consequences.    Don’t try that at your day job, folks.   All of this has me fed up with the Fed. And as I’ve said before, it’s not really that I hate the Fed or think Jerome Powell is some kind of puppeteer running our lives. I think it’s a lot less sinister and a lot more banal than that.   But the power we give these folks in the markets is absolutely crazy.   And the financial media has gotten out of control. If Jerome Powell sneezes too hard, they’ll report the next stock market crash is just around the corner.    It’s all a game we play to keep things “interesting…” When the real trading is usually done by ignoring the headlines and focusing on what really matters.   There might be a few great fundamentals traders out there, but I’m so proud of our team here at ProsperityPub and their pretty much unanimous focus on technicals.    Sure, they’re aware of the Fed decision, same as anyone, but it’s not going to change their approach to trading.    And that’s where we should all be!    Speaking of which, if you didn’t catch it today, I got to moderate Jack Carter’s 1pm briefing about his 10 AM Income Project, and in the candid Q&A discussion we had after he was done, he gave a great explanation of why folks shouldn’t care at all about what Powell has to say. It was a lot of fun, and not for the faint of heart.   If you weren’t there live, I’ll share that over on the ProsperityPub Telegram as soon as I can get my hands on the recording (you can join us here — it’s FREE!)    Or you can check back here Monday. I’ll probably still be talking about it.   As for now, put your Powell blinders on and enjoy your weekend. Hope the markets have been your friend this week.   To your prosperity,   Stephen Ground Editor-in-Chief, ProsperityPub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to phanxuanhoa60.trade1357@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions.   Unsubscribe This email was sent to phanxuanhoa60.trade1357@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub