Chris and Geof have opposite opinions, but they have similar strategies
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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.
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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:
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| This ONE Ticker Has Massive Breakout Potential
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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:
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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!
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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
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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
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
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