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Jeff Bishop Total Alpha Service | Is the Fed Spinning Out of Control?

It’s all quiet, heading into the all-important Fed meeting. For weeks, traders were expecting a 0.25% rate cut… but things changed yesterday.

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Source: Bloomberg

We saw the Federal Reserve inject billions in cash to keep short-term interest rates in check… as they were pushing up the Fed’s benchmark rate.

The Fed noted it’s willing to spend an additional $75B today.

With this massive spike in the short-term lending market, it was a sign the Fed may be losing its tight grasp on monetary policy.

That said… there’s a lot of uncertainty around what the Fed is going to do… and how the funding shortages in the repurchase agreements (repos) market can affect the overall market…

… traders are now pricing in a 51.9% chance of a rate cut… when it was sitting at 92.3% just last week.

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Source: CME Group

It makes sense that this has pretty much gotten down to a coin flip. Looking at the Fed, I see two possible outcomes right now.

Possible Outcome for the Fed

First, if they cut rates by 0.25% and signal there may be more rate cuts in the cards… with a dovish tone… those actions could send the markets higher in the short-term.

On the other side, anything else will probably cause some panic and cause traders to sell. Basically, if the Fed looks to leave rates unchanged… it could tank the market.

Of course, the market could see a spike higher initially. However, I expect that most traders will look to fade the move.

What I mean by that, is I think they’ll be looking to buy some puts — in an attempt to hedge their portfolio.

I mean why wouldn’t they?

With volatility being priced as low as it is… and the recent plummet in the $VIX… it would be pretty reckless for anyone who’s long the market at these levels not to buy a bit of protection.

Consequently, we could see a quick spike in volatility.

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Some names I’ll be keeping my eyes on today (in terms of potential volatility trades) include VXX, UVXY, and SVXY.

Market at a “make or break” level

As we all know, it doesn’t make a lot of sense to place a sizable bet ahead of the Fed… and everyone seems to believe this will be “THE” announcement that makes or breaks the market.

However, the fact is… no trader really knows how the market is going to react to Jerome’s comments… and that’s probably why the market seems directionless at the moment.

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We saw the SPDR S&P 500 ETF (SPY) have a massive rally… and just stall after the market hit all-time highs. It’s almost as if it can’t make up its mind and just break out.

Depending on what the Fed says… we could see the market back at all-time highs (the blue horizontal line)… and I’ll keep a close eye on what it does there… whether it continues higher…

…or if my money pattern comes up signaling a potential crash, I’ll be ready to pounce.

Kooky Action in the Bond Market

We’ve seen treasury yields get a little wild recently…

Just take a look at all this back and forth action in TLT…

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However, it looks like the money pattern is flashing a buy in TLT right now (the blue line looks to cross above the red line)… so I’ll be monitoring the Fed very closely.

With treasury yields potentially moving a lot in this Fed announcement, it should affect other asset classes like gold and silver.

That said, GLD — the gold tracking ETF — will also be in play, as well as SLV (the silver tracking ETF).

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Remember, it’s Fed day… so don’t get too trigger happy and slam into random trades.

We’re seeing some turmoil in the repo market, which caused a key benchmark (the effective fed funds rate) to jump to 2.25%… and the Fed may address that in today’s press conference.

Of course, there has been a sea of changes in the markets… and the Fed needs to address the ongoing problems as well. Jerome and Gang have their backs to the wall, and it’ll be interesting to see how this pans out.

Source: WeeklyMoneyMultiplier.com | Original Link

Author John GladstonPosted on September 18, 2019Categories Jeff Bishop Real Users ReviewsTags Bullseye Trades, Bullseye Trades Review, Bullseye Trades Reviews, Bullseye Trades Scam, charts, Dow Jones, ETFs, GS, Jeff Bishop Bullseye Trades, Jeff Bishop Bullseye Trades Review, Jeff Bishop Bullseye Trades Reviews, Jeff Bishop Bullseye Trades Scam, 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

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