Skip to content

Velocity Trader

Over the 64 trades in the model portfolio – 71.88% were profitable.

Velocity Trader

FOMC Voting Members Pointing to Rate Cuts

The stock market is brushing up against all-time highs, and the biggest week of earnings season is here, but I want to shift the focus to something that traders aren’t talking about yet.

What am I referring to?

The upcoming Federal Open Market Committee (FOMC) meeting on July 30 and 31, which I believe, will set the tone for which direction the market goes next.

The market is pricing in a 100% chance of an interest-rate cut next week. It’s been like that for weeks, and hence, why the market has rallied over the last few weeks.

Now, the last time the Fed sat down and decided to cut interest rates was 2008, during the financial crisis.

This time, the Fed isn’t waiting for the market to fall off the edge of a cliff before it takes action.

That said, it leaves us with a lot of questions like:

I take a stab at answering those questions and more.

The Bankers’ Bank is Set to Move the Markets

The Federal Open Market Committee (FOMC) will be announcing its interest rate decision next Thursday at 2:00 PM, as well as comment on the economy and give traders an idea of what to expect.

That in mind, all eyes will be on the Fed the following week… and it could uncover a lot of opportunities in the market.

For the most part, the market is expecting a rate cut.

The market is pricing in a 78.6% chance of a 0.25% rate cut, and a 21.4% chance of a 0.50% chance of a rate cut.

You see, traders are seeing a number of reasons for low-interest rates like:

  • Slow global economic growth
  • Trade war tensions
  • Policy makers to leave the door open for the possibility of further cuts down the road to sustain economic growth

Now, there actually have been some Fed voting members coming out with a dovish tone already.

FOMC Voting Members Pointing to Rate Cuts

For example, St. Louis Fed President James Bullard stated, “I’d like to go 25 basis points at the upcoming meeting…I think the easing cycle is a little bit strong for this situation”

Vice-Chairman of the Fed Richard Clarida also noted, “You don’t need to wait until things get so bad to have a dramatic series of rate cuts… We need to make a decision based on where we think the economy may be heading.”

Moreover, we’ve seen Chicago Fed President Charles Evans noted he would favor two rate cuts before the end of the year.

However, as we know with the Fed… they’re going to be data-dependent and decide on their interest rate decisions… but they’ll let us know what they’re thinking next week.

Right now, traders are looking for clues as to when and by how much the Fed will cut rates… and there are some important data points coming out this week.

With that said, there are some important economic indicators that could sway the FOMC next week.

Economic Indicators to Focus On


— RECOMMENDED —

Options trading has never been so easy!

Learn How 3 Green Lights Trigger Profit Eruption

BONUS: Stay until the end of this training and receive Jeff’s Course: Become an Option Pro in 30 Days.


Durable goods orders numbers are being released tomorrow… and the market is looking for New Orders to come in at 0.50%, and Core Capital Goods to come in at 0.20%.

Why does the market care about this?

Well, these indicators give us an idea of how the overall economy is doing. Basically, if durable goods are weak… that means companies aren’t doing as well as the market thinks they are.

In turn, this could push the FOMC to look to cut rates faster… if the numbers come in weaker than expected.

On the other hand, if those numbers are better than expected, it could easily sway the Fed to cut interest rates by fewer percentage points than the market is projecting.

As always, jobless claims will be in play… if those come in weaker than expected… it could be a sign the economy is actually weaker than nearly everyone is saying.

Now, one of the biggest indicators the Fed looks at is the Gross Domestic Product (GDP). Basically, GDP gives the Fed an idea of how fast the overall economy is growing, as well as the current levels of inflation.

If GDP comes in lower than expected… well, look for the Fed to cut rates. But if they come in well above the consensus estimate of 1.9%, then this could cause the Fed to undeliver on its promises for rate cuts.

The Fed is at a crossroad now.


— RECOMMENDED —

Learn How You Could DOUBLE or TRIPLE Your Account in One Week!

Find Out How With The #1 Selling Trading Guide: Now Yours For FREE!


You see, if the FOMC doesn’t cut rates… it’ll disappoint the market and potentially cause the market to crash.

If the Fed does cut rates and indicate more potential rate cuts… that’s a negative backdrop for the market… and it could cause the market to sell-off. You see, the FOMC doesn’t typically cut rates when the market is near all-time highs.

Why?

Well, if you think about it… rate cuts are typically used then the market is selling off and the economy is weak… think about the rate cuts prior to the recent one… the Fed cut rates back during the financial crisis.

You see, when the economy is weak… rate cuts actually stimulate it… and cause the market to run higher.

But there’s a disconnect now. The market is at all-time highs… and the economy is expected to slow down.

The market is bouncing between $295 and $300… and they’re waiting for the Fed on Thursday… and these indicators will give us an idea of where the Fed could be looking to.

So what kind of trading opportunities will be opening up?

Well, there’s going to be a trade in the SPY, the iShares 20+ Year Treasury Bond ETF (TLT), and precious metals… as well as shipping stocks.

That said, I’m going to be preparing by analyzing the Fed more and looking at the charts, more specifically… the money pattern. Now, I’m going to be giving my best Fed ideas (if I see any) to my clients… and we could potentially see multiple triple-digit winners.

If you’re ready to get started and trade around the Fed with options, and receive real-time text alerts, Mastermind video lessons, and so much more… then click here to see how Weekly Money Multiplier can help you achieve your goals.

Source: WeeklyMoneyMultiplier.com | Original Link

Author John GladstonPosted on July 24, 2019Categories Jeff Bishop Real Users ReviewsTags charts, Dow Jones, ETFs, GS, Jeff Bishop Options Trading, Jeff Bishop Review, Jeff Bishop Weekly Money Multiplier, Jeff Bishop Weekly Money Multiplier Review, Jeff Bishop's Option Profit Nexus, Jeff Bishop's Option Profit Nexus Review, Jeff Bishop's Option Profit Nexus Reviews, Jeff Bishop's Option Profit Nexus Scam, Jeff Bishop's Options Guide to Riches Ebook, Jeff Bishop's Total Alpha Trading, Jeff Bishop's Total Alpha Trading Review, Jeff Bishop's Total Alpha Trading Reviews, Jeff Bishop's Total Alpha Trading Scam, learn to trade options, markets, NASDAQ, Nathan Bear form Weekly Money Multiplier, Nathan Bear form Weekly Money Multiplier Picks, Nathan Bear form Weekly Money Multiplier Review, Nathan Bear form Weekly Money Multiplier Reviews, Nathan Bear form Weekly Money Multiplier Scam, Option Profit Nexus, Option Profit Nexus Login, Option Profit Nexus Results, Option Profit Nexus Review, Option Profit Nexus Reviews, Option Profit Nexus Scam, Option Profit Nexus Website, Option Rocket, Option Rocket Complaints, Option Rocket Fraud, Option Rocket Kyle Dennis, Option Rocket Login, Option Rocket Price, Option Rocket Real User Review, Option Rocket Refund, Option Rocket Review, Option Rocket Reviews, Option Rocket Scam, Option Rocket StockGumshoe, Option Rocket Trial, Option Rocket Website, option trading, option trading strategy, options, Options Guide to Riches, Options Guide to Riches Free, Options Rocket Kyle Dennis, Options Rocket login, Options Rocket Review, Options Rocket Reviews, Options Rocket Scam, Options Rocket User experience, Options Rocket user review, Options Rocket webinar, Options Rocket website, options trading, options trading newsletter, options trading strategies, options trading tips, options trading webinar, Options Vortex, Options Vortex Complaints, Options Vortex Fraud, Options Vortex Login, Options Vortex Performance, Options Vortex Program, Options Vortex Refund, Options Vortex Results, Options Vortex Review, Options Vortex Reviews, Options Vortex Scam, Options Vortex StockGumshoe, Options Vortex Website, Options War Room, Options War Room Price, Options War Room Review, Options War Room Reviews, Options War Room Scam, Options War Room Schedule, Options War RoomRefund, RagingBull Options Vortex, RagingBull Options Vortex Review, RagingBull Options Vortex Reviews, RagingBull Options Vortex Scam, Russell, S&P, SPX, SPY, squeeze, strategies, Total Alpha Trading, Total Alpha Trading Review, Total Alpha Trading Reviews, Total Alpha Trading Scam, Total Alpha Training, Total Alpha Training Live webinar, trading, understanding options trading, VIX, Weekly Money Multiplier, Weekly Money Multiplier Alert, Weekly Money Multiplier Complaints, Weekly Money Multiplier Discount, Weekly Money Multiplier Fraud, Weekly Money Multiplier login, Weekly Money Multiplier Real User Review, Weekly Money Multiplier Refund, Weekly Money Multiplier Review, Weekly Money Multiplier Reviews, Weekly Money Multiplier Scam, Weekly Money Multiplier Stockgumshoe, Weekly Money Multiplier User Experience, Weekly Money Multiplier Website, WMM, WMM Alert

Post navigation

Previous Previous post: Kyle Dennis Biotech Nucleus | 3 Steps I took to Lock in $25K on One Single Trade
Next Next post: Kyle Dennis Biotech Nucleus | This Bullish Strategy Makes Money 3 Ways
Velocity Trader > Jeff Bishop Real Users Reviews > FOMC Voting Members Pointing to Rate Cuts

Tags

  • charts
  • Dow Jones
  • ETFs
  • GS
  • Jeff Bishop Review
  • learn to trade options
  • markets
  • NASDAQ
  • Option Rocket Kyle Dennis
  • Option Rocket Review
  • Option Rocket Reviews
  • Option Rocket Scam
  • options
  • Options Rocket Kyle Dennis
  • Options Rocket login
  • Options Rocket Review
  • Options Rocket Reviews
  • Options Rocket Scam
  • Options Rocket User experience
  • Options Rocket user review
  • Options Rocket webinar
  • Options Rocket website
  • options trading
  • options trading newsletter
  • options trading strategies
  • options trading tips
  • options trading webinar
  • option trading
  • option trading strategy
  • Russell
  • S&P
  • SPX
  • SPY
  • squeeze
  • strategies
  • trading
  • understanding options trading
  • VIX
  • Weekly Money Multiplier
  • Weekly Money Multiplier login
  • Weekly Money Multiplier Real User Review
  • Weekly Money Multiplier Review
  • Weekly Money Multiplier Reviews
  • Weekly Money Multiplier Scam
  • Weekly Money Multiplier User Experience

Jeff Brown Tech Melt

Teeka Tiwari's Investment of the Decade

Teeka Tiwari's Investment of the Decade

Insider - Asymmetric Investing Service

The Smartest Investment Strategy of All Time - Bill O'Reilly and Alex Green

Blitz Tracker

CRISIS INVESTING 2020: Emergency Briefing

Recent Posts

  • Project Mastermind 2021: Is Louis Navellier’s Event Legit?
  • What Is The Pre IPO Code by Jeff Brown? Is It Legit?
  • Whitney Tilson TAAS Stock Pick: Obscure stock group returns 570% on average
  • Jason Bond’s 3 Simple Chart Patterns – How they work?
  • Graham Summers’s Death Spiral: Have You Prepared Your Loved Ones for January 15?

Top 7 Trading Resources

Best Trading Advice

Steady Income Investments

Crypto News

Options Trading Strategies

Top Marijuana Stocks

FREE Trade Alerts

Best Blockchain Stocks to Buy

Velocity Trader Proudly powered by WordPress