The Fed has announced their operation in the overnight funding market today morning to arrest the spike in their rates - third time in as many days. The last time they had to do this was in 2008. Observers are scratching their heads to figure out just what might be going on - is this a temporary cash crunch or just the tip of something more ominous that is yet to surface?
For now - as of this morning - the equity markets seem to be not too concerned by it (or, by the increasing noise of the US-Saudi-Iran rhetoric). Unless these operations become more frequent, chances are that this would fade away; but, IF if it does repeat and raise concerns of potential spread to other markets, it could be a replay of 2008! While no need to panic right now, be alert to any further developments in this space. Read below for our models' trading plans for today.
NOTES - HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc), the quality of your broker's execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance - USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.
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