That was a nice close! :)
Here is the way I see the paradigm the stock market is in right now:
Based on Powell's conference this afternoon, the FED does not seem to see the urgency to reduce rates. I am not even sure they will drop the expected 25bp everybody counts on at the next meeting. Even 25bp would not likely be enough to reassure the market anyway. So, if the markets show signs of weakness, it may help its cause to justify the insufficient 25bp relief. If it does not, it won't get any relief and the drop is going to be even worse.
Add to that risk of BREXIT, Trade negociations in China (which will restart after the September FED meeting so one more reason for the FED might want to wait and see), Global slow down in the economy, big banks problems... No matter how I look at it, regardless of the pop we got this week (based on pure HOPE), we are going down in the next few weeks...
Just my thoughts, trade safely and Have a GREAT weekend!
Here is the way I see the paradigm the stock market is in right now:
Based on Powell's conference this afternoon, the FED does not seem to see the urgency to reduce rates. I am not even sure they will drop the expected 25bp everybody counts on at the next meeting. Even 25bp would not likely be enough to reassure the market anyway. So, if the markets show signs of weakness, it may help its cause to justify the insufficient 25bp relief. If it does not, it won't get any relief and the drop is going to be even worse.
Add to that risk of BREXIT, Trade negociations in China (which will restart after the September FED meeting so one more reason for the FED might want to wait and see), Global slow down in the economy, big banks problems... No matter how I look at it, regardless of the pop we got this week (based on pure HOPE), we are going down in the next few weeks...
Just my thoughts, trade safely and Have a GREAT weekend!
