Stampede On Fedβs Dovish Signal π
The U.S. government is pushing the accelerator pedal to the floor with reckless spending on the fiscal side. The Fed has been applying the breaks. Now, the Fed has lifted its foot off of the breaks. Investors may floor their pedals to the metal but please remember to buckle up! π’
β οΈ Trading tips: looking at MSFT calls above 430. Best to wait for a dip buy for a quick 0dte trade. Can exit above 20% gain and enjoy the weekend. Risk only what you can afford to lose!
The stronger Mag 7 ticker
The Fed has turned ultra dovish, risking inflation. The Fed has shrugged off hot inflation data. Sentiment is extremely positive. Keep in mind that when sentiment is extremely positive, it is a contrary indicator.
The announcement came alongside the release of new economic projections revealing a Federal Open Market Committee (FOMC) consensus for three rate cuts in 2024, but a slightly lower pace of rate reductions going forward compared to December estimates.
During the press conference, Fed Chair Jerome Powell remarked that it is βlikely to cut rates at some point this year,β adding that the Fed will do so when obtaining βgreater confidence inflation is moving sustainably down to 2%.β
Use the blue channel as a guide
The tech-heavy Nasdaq 100 surpassed 18,440 points, also achieving unprecedented all-time highs. The Dow Jones added over 300 points, edging closer to the historic milestone of 40,000 points.
Meanwhile, the S&P 500 index surged above 5,250 points, continuing its upward trajectory to set new record highs. All eleven sectors of the S&P 500 posted gains.
-Gold is trading above $2200 for the first time ever. Money is rushing into gold as investors try to protect themselves from the Fed apparently losing its resolve to fight inflation. Smart money is aggressively buying gold in the early trade.
-Apple Inc (NASDAQ:AAPL) is in trouble with the U.S. government for violation of antitrust laws. The Department of Justice is getting ready to sue Apple. The lawsuit alleges that Apple exerted monopolistic control in the smartphone market.
-Bitcoin (CRYPTO: BTC) is being bought on the change in Fed policy but fell 2% the next day.
-Shares of Reddit Inc. (NYSE:RDDT) are indicated to open at $50-$52, in their first day of trading.
-Micron Technology, Inc. (NASDAQ:MU) rallied nearly 16% following the memory chipmakerβs earnings announcement.
-Chipmaker peers such as Broadcom Inc. (NASDAQ:AVGO) rose 9% following a bullish note from Goldman Sachs.
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- koolgalΒ·03-22TOPI love your analogy of Feds in a racing car accelerating and we have to buckle up for the ride πππ1Report
- 0billionaireΒ·03-22TOPRemember to only risk what you can afford to lose1Report
- AqaΒ·03-22TOPππ»ππ»ππ»ππ»ππ»1Report