≈ The Fed in: Quantitative Tightening ≈
A rumor circulated on Friday with potential ramifications towards all markets. The rumor was that the Fed may be considering a quicker end to the runoff of bonds it is holding on its balance sheet. In other words, the quantitative tightening phase may be coming to an end. We will be diving into this complicated but incredibly impactful topic on all Tackle Trading content this week as it could have quite an impact on your trading in the coming days, weeks and months ahead.
Constantly in 2018 short-term bullish rallies were derailed by hawkish statements made by Jerome Powell on interest rates or the balance sheet. While October’s and December’s drops were heavily technically driven one of the major catalysts behind the drop was the Fed’s policy/stance. One of the major catalysts (if not THE) behind the recent price movement upward has been a perceived shifting of that policy/stance. If true, Friday’s rumor has the potential to be a major bullish catalyst for 2019 to say the least. In fact, it may be THE STORY in 2019. If you are a pro you do not want to miss this week’s Coaches Show as we will dive deep into this topic. If you aren’t this would be an excellent time to sign up for a free-trial as this story is huge.
Chart of the Day
S&P 500 (SPY)
Short-term moving averages continue to hold on the markets in a rally that is now approaching one-month! Not a single close below the 5-ema on the daily chart is a telling sign of how strong this rally has been.
Video of the day
Market Reaction to the FED rate hike
The United States Federal Reserve announced back in December that they are increasing the fed fund rate .25 bps to 2.25-2.50% as was expected.
Today’s line up
Traders Lounge 11PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
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