Two experts weigh in on rate cuts

Chris and Geof have opposite opinions, but they have similar strategies

View in browser

View in browser

SEPTEMBER 16, 2024       The “big week” is finally here. We’ve been waiting for potential rate cuts, and now, on Wednesday, Chairman Jerome Powell (or Thurston Howell, as my friend Jack Carter likes to call him) will announce the verdict.   Traders are expecting a 0.25% rate cut at minimum, and maybe a 0.50% rate cut if we’re “lucky.” While the size of the cut is uncertain, one thing is a guarantee this week: volatility. So I asked some of our experts to weigh in on how they’d handle things this week. I got two pretty opposite opinions on rate cuts, but both traders gave similar advice on how to play it. Here’s what they said:  This ONE Ticker Has Massive Breakout Potential   Even though the QQQ is a roller coaster right now, Nathan Tucci believes this ONE ticker is primed for a move higher. >> Tap HERE to see the details This cut cycle is for the consumer. Housing activity mainly — most unaffordable housing market ever! cuts will spur refinancing, moves, new builds, more inventory, etc. and tapping into household equity is the next consumer spending pocket. This week traders should expect reasonable to high volatility Wed afternoon to Friday due to all of the anticipation of the FED rate cut. Probabilities have shifted and will likely still fluctuate between 25 bps to 50 bps with the official cut, price action will be key to see how the week settles. I’m trading volatility! Chris gives us a great case for why the rate cut is happening, and also how to play it. He also noted that expectations have fully flipped such that more traders are expecting a 0.50% rate cut now:   Using volatility at a time like this can be incredibly powerful. Keep a close eye on the VIX and see how it plays out. A lot of the chaos this week will be focused on Wednesday afternoon and after, so make sure that’s when you’re locked in — or, if you just don’t want the stress, maybe take an early weekend!   I don't get the rate cut at all.  No negative GDP, CPI, or PPI, but jobs have slowed down. There is no recession threat, and inflation is still rising, though at a slower pace.  This whole Fed business is run by idiots. With that said, why would they worry about a rate cut?  That is what the market has been wanting.  I would say the worry is if they don't cut.  That would be the surprise and the market probably would not like that and sell off.  Be patient and see what they do. Geof doesn’t pull any punches when it comes to his thoughts on the Fed (or on anything else, for that matter). I tend to agree with him that the economy hasn’t slowed down much as you’d expect for a rate cut to happen — but I do understand Chris’s case for why these rate cuts are happening now. Either way, Geof advises patience. What to see what happens on Wednesday, and then there will be opportunities afterwards. What are your expectations for rate cuts? Let us know by replying to this email! And when the opportunities come later this week, you know we’ll be here covering it! To your prosperity, Stephen Ground Editor-in-Chief, ProsperityPub

SEPTEMBER 16, 2024 The “big week” is finally here.   We’ve been waiting for potential rate cuts, and now, on Wednesday, Chairman Jerome Powell (or Thurston Howell, as my friend Jack Carter likes to call him) will announce the verdict.   Traders are expecting a 0.25% rate cut at minimum, and maybe a 0.50% rate cut if we’re “lucky.”   While the size of the cut is uncertain, one thing is a guarantee this week: volatility.   So I asked some of our experts to weigh in on how they’d handle things this week.   I got two pretty opposite opinions on rate cuts, but both traders gave similar advice on how to play it. Here’s what they said:  This ONE Ticker Has Massive Breakout Potential   Even though the QQQ is a roller coaster right now, Nathan Tucci believes this ONE ticker is primed for a move higher. >> Tap HERE to see the details This cut cycle is for the consumer. Housing activity mainly — most unaffordable housing market ever!   cuts will spur refinancing, moves, new builds, more inventory, etc. and tapping into household equity is the next consumer spending pocket.   This week traders should expect reasonable to high volatility Wed afternoon to Friday due to all of the anticipation of the FED rate cut.   Probabilities have shifted and will likely still fluctuate between 25 bps to 50 bps with the official cut, price action will be key to see how the week settles.   I’m trading volatility!   Chris gives us a great case for why the rate cut is happening, and also how to play it.   He also noted that expectations have fully flipped such that more traders are expecting a 0.50% rate cut now:   Using volatility at a time like this can be incredibly powerful. Keep a close eye on the VIX and see how it plays out.   A lot of the chaos this week will be focused on Wednesday afternoon and after, so make sure that’s when you’re locked in — or, if you just don’t want the stress, maybe take an early weekend!   I don't get the rate cut at all.  No negative GDP, CPI, or PPI, but jobs have slowed down. There is no recession threat, and inflation is still rising, though at a slower pace.  This whole Fed business is run by idiots.   With that said, why would they worry about a rate cut?  That is what the market has been wanting.  I would say the worry is if they don't cut.  That would be the surprise and the market probably would not like that and sell off.  Be patient and see what they do.   Geof doesn’t pull any punches when it comes to his thoughts on the Fed (or on anything else, for that matter).   I tend to agree with him that the economy hasn’t slowed down much as you’d expect for a rate cut to happen — but I do understand Chris’s case for why these rate cuts are happening now.   Either way, Geof advises patience. What to see what happens on Wednesday, and then there will be opportunities afterwards.   What are your expectations for rate cuts? Let us know by replying to this email!   And when the opportunities come later this week, you know we’ll be here covering it!   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