Hey guys, just an update from my side since we had our FOMC statement and press conference by FED chairman Jerome Powell.
The FED hinted that they are positive that the US economy is growing stronger, "With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have improved in recent months, but the rise in COVID-19 cases has slowed their recovery.", even if it's not optimal but should grow as they contain the virus.
A vague directive was also alluded to regarding the monetary policy, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.", this doesn't give investors the needed confidence to hold their long positions and we may see a continued downward movement and this is not a major sell off but a mere correction in the market.
They also alluded to the fact that they may start their tapering process soon (likely to have a timeline in the next meeting) "Since then, the economy has made progress toward these goals. If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted."
Taking this few points into consideration, I am still waiting for a retest of the broken structure as well as the order block that was left untested. I believe we will see a downward movement 33270 in the remaining half of the month into November. Out of the 10 most weighted components of the Dow on two we down and not significantly either (UNH -0.83% & AMGN -0.49%) and these two stocks are only 2 of 4 of the components that are down so it is important to be cautious when selling too. Keep the risk minimal!
Do me a solid, like & comment on the ideas I post and follow me for more.
To read and interpret the statement for yourself please view it here: www.federalreserve.g...onetary20210922a.htm
This analysis does not constitute financial advise but rather an analysis & interpretation of financial instruments.
The FED hinted that they are positive that the US economy is growing stronger, "With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have improved in recent months, but the rise in COVID-19 cases has slowed their recovery.", even if it's not optimal but should grow as they contain the virus.
A vague directive was also alluded to regarding the monetary policy, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.", this doesn't give investors the needed confidence to hold their long positions and we may see a continued downward movement and this is not a major sell off but a mere correction in the market.
They also alluded to the fact that they may start their tapering process soon (likely to have a timeline in the next meeting) "Since then, the economy has made progress toward these goals. If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted."
Taking this few points into consideration, I am still waiting for a retest of the broken structure as well as the order block that was left untested. I believe we will see a downward movement 33270 in the remaining half of the month into November. Out of the 10 most weighted components of the Dow on two we down and not significantly either (UNH -0.83% & AMGN -0.49%) and these two stocks are only 2 of 4 of the components that are down so it is important to be cautious when selling too. Keep the risk minimal!
Do me a solid, like & comment on the ideas I post and follow me for more.
To read and interpret the statement for yourself please view it here: www.federalreserve.g...onetary20210922a.htm
This analysis does not constitute financial advise but rather an analysis & interpretation of financial instruments.
