The lord giveth, and the lord taketh away…
People were buying stocks hand over fist Wednesday — I’ll show you the strongest and weakest stocks in the market* to start December in today’s video — after Federal Reserve Chair Jerome Powell was more dovish on future interest rate hikes…
Only to dump them Friday morning.
And it’s all because of the same underlying fact that the market is being held hostage by the bureaucrats at the Fed, either bouncing to the moon or puking in the basement after every headline or new datapoint drops
If it looks like rate hikes could ramp up, like it has most of the year… the market tanks. If it looks like inflation is coming down… the market explodes higher. It’s all or nothing with no middle ground.
Powell went the opposite direction he’s been going most of the year — maybe he’s long in his portfolio — saying they could be almost done, things are great, inflation is coming down…
And the market ripped, the tech-heavy Nasdaq in particular, shown below in the Invesco QQQ Trust Series 1 (Nasdaq: QQQ), which tracks the Nasdaq 100…
But he did say one thing that caught my ear… that the job market remains stubbornly strong. I know many people may not understand this because it sounds counterintuitive, but Powell thinks the only way to get inflation under control is to break the job market.
He wants people out of work to get that inflation number back down to 2%. And we got another data point Friday morning that showed wages are still rising — also bad – if you want to see lower rates.
Check out my video up top, and let’s discuss what’s happening across Wall Street. Because I see this hostage crisis in the market continuing, and it’s going to keep impacting our trading in a major way.
I’ll also go over the best and worst stocks in the S&P 500 to start December, which will give you some actionable ideas. In fact, some of these stocks could end up in our nine Money Flows Elite trades that I’m dropping on Monday.
I’m hosting a live event at 1 p.m. ET, where I’ll go over the entire system — December and January are usually the two best months of the year, so be sure to sign up for event here if you’re interested!
Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at firstname.lastname@example.org. And be sure to stay ahead of the markets by subscribing to our YouTube channel and our Instagram page for all of the latest! Don’t forget to like, subscribe and leave us a comment!
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
On both Dec. 1 and Dec. 2… a monthly phenomenon took place.
Which will set up Monday, Dec. 3, up for one final Massive opportunity in 2022!